Fitch Ratings warned on December 16 that Belgian depository Euroclear has been added to its list of negative rating observations, citing potential liquidity problems and legal risks.
The agency stated these concerns stem from the European Commission’s (EC) plans to use frozen Central Bank of Russia funds for reparation loans to Ukraine. Additionally, Fitch noted that the EU’s decision to permanently freeze Russian assets—instead of updating sanctions every six months—increases financial uncertainty and risk for Euroclear.
On December 12, the Bank of Russia filed a lawsuit against Euroclear in Moscow’s arbitration court, claiming it lost the ability to manage its funds and securities due to Euroclear’s actions. The regulator attributed this to both Euroclear’s conduct and EC mechanisms that permit direct or indirect use of Russian assets without consent.
In response, Euroclear has signaled readiness to defend itself in Russian courts over claims related to frozen assets. EC official Paula Pinho affirmed the EU remains confident in the legality of using such assets.
