Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
The Government Media Office in Gaza: The occupation’s latest crime is further evidence of its ongoing implementation of genocide through starvation.
Gaza Government Media Office: This is a methodical use of aid as a tool of war to blackmail hungry civilians.
Gaza Government media office: Massacre committed by occupation today is a blatant war crime under international law.
Al Mayadeen's correspondent: Waves of injured and martyrs continue to arrive at Nasser Medical Complex following the horrific massacre near the aid distribution centers in Rafah.
Al Mayadeen's correspondent in Gaza: 30 martyrs and 120 wounded by Israeli fire while heading to a 'US aid distribution site' west of Rafah.
Araghchi to Grossi: These parties will bear responsibility for the consequences of their actions
Araghchi to Grossi: Iran will respond to any unlawful action by European countries or parties attempting to turn the Agency into a tool for achieving their objectives
Araghchi to Grossi: We urge the Agency to warn against the consequences of any political move against Iran
Araghchi to Grossi: We call on the Agency to highlight Iran’s full cooperation during the upcoming Board of Governors meeting next week
Araghchi to Grossi: We demand that the Agency reflect the facts in a manner that prevents certain parties from exploiting it to advance their political agendas

Reuters: Russia asset seizure could trigger global collapse

  • By Al Mayadeen English
  • Source: Agencies
  • 13 Mar 2024 13:01
  • 2 Shares
3 Min Read

A European Union official has emphasized the necessity for Brussels to establish an "emergency mechanism" in case the EU initiative to financially support Kiev using funds from Russia encounters unforeseen consequences.

  • x
  • European Union flags fly outside the headquarters of the European Commission in Brussels. (AFP)
    European Union flags fly outside the headquarters of the European Commission in Brussels. (AFP)

A senior EU official stated that while Brussels is exploring legal avenues to transfer frozen Russian assets to Ukraine, it should reserve a portion of the funds as a "safety net" in case Euroclear, its clearing house, encounters difficulties that could potentially disrupt the entire global financial system, as reported by Reuters.

The West has frozen approximately $300 billion in assets belonging to the Russian central bank since the onset of the Ukraine war two years ago, with Euroclear in Brussels holding roughly €191 billion ($205 billion) of these assets. The EU is reportedly expediting the decision to allocate the first installment of up to €3 billion from the profits generated by frozen Russian assets to Kiev, with plans to do so as early as July.

However, according to an unidentified EU official speaking to Reuters on Tuesday, Brussels must guarantee that financial stability is not compromised. The source added that once the war concludes and all transactions can be finalized, any funds provisionally withheld will also be transferred to Ukraine. However, a substantial amount needs to be retained in Euroclear due to the anticipation of numerous claims against it.

Dive deeper

Related News

Iran warns against politicization of IAEA, during critical period

US Envoy calls Hamas ceasefire response 'totally unacceptable'

The official cautioned that if the West proceeds with expropriating the funds, the Russian central bank is expected to seize approximately €33 billion of Euroclear funds held in the national securities depository in Moscow. Additionally, Russia may pursue legal action to seize Euroclear cash from depositories in Hong Kong and Dubai.

Moscow has consistently warned of retaliatory measures if the West follows through with threats to confiscate Russian assets. Last month, the Finance Ministry stated that Western states and companies still maintain investments in Russia, which could be at risk if the frozen funds are accessed.

The EU official further warned that if Western banks initiate lawsuits against Euroclear for the loss of their investments in Russia, it could lead to the complete depletion of Euroclear's funds.

The official cautioned that Euroclear Bank, which holds over €37 trillion in assets globally, could face liquidity issues if overwhelmed by a multitude of lawsuits. In such a scenario, the Belgian central bank might be compelled to revoke its license, potentially triggering a global financial crisis.

Regarding the takeover of Russia's frozen assets to assist Ukraine, there is a division among Western nations. While the US and UK advocate for directly seizing the assets, certain EU member states like France and Germany have recently expressed concerns that such actions could have adverse effects on financial stability, and undermine trust in the euro as a reserve currency.

Read next: French Patriots: using Russian frozen assets in EU 'illegal, foolish'

  • United States
  • Russia
  • war in Ukraine
  • Russian assets
  • European Union

Most Read

President Donald Trump and Israeli Prime Minister Benjamin Netanyahu arrive to a news conference in the East Room of the White House, Tuesday, Feb. 4, 2025, in Washington (AP)

Rift widens: Trump, Netanyahu clash in heated phone call over Iran

  • Politics
  • 26 May 2025
US judges quietly consider private security amid Trump tensions

US judges quietly consider private security amid Trump pressures

  • US & Canada
  • 25 May 2025
An Israeli army vehicle moves in the Gaza Strip as seen from southern occupied Palestine, Thursday, May 29, 2025 (AP)

Hamas rejects Witkoff ceasefire plan, says alters terms

  • Politics
  • 29 May 2025
Spokesperson for the Yemeni Armed Forces, Brigadier General Yahya Saree, announces a new operation against Ben Gurion Airport on May 29, 2025 (Yemeni Military Media)

Yemen announces successful hypersonic missile strike on Ben Gurion

  • Politics
  • 30 May 2025

Coverage

All
War on Gaza

Read Next

All
MIT bans class president who gave pro-Palestine speech
US & Canada

MIT bans class president over pro-Palestine speech

Arab ministers condemn Israel 'ban' on planned West Bank visit
Politics

Arab ministers condemn Israeli ban on planned West Bank visit

Major General Hu Gangfeng, Vice President, National Defense University, People's Liberation Army, China, leaves after a panel discussion during the 22nd Shangri-La Dialogue summit in Singapore, Saturday, May 31, 2025. (AP Photo/Anupam Nath)
Politics

China blasts Hegseth, calls US top 'troublemaker' in Asia-Pacific

US activists demand shutdown of Musk's 'dirty' supercomputer: Reports
Technology

US activists demand shutdown of Musk's 'dirty' supercomputer: NBC News

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS