BRUSSELS, Dec 18: A reparation loan for Ukraine based on frozen assets of Russia carries a lot of financial and economic risks, Belgian Prime Minister Bart de Wever said on Thursday.
“This story carries a lot of financial and economic risks,” de Wever said told lawmakers, commenting on the EU’s proposal regarding a reparation loan for Ukraine secured by Russian assets.
The EU must assume all financial risks, as the amount of compensation in courts may significantly exceed the amount of Russian assets, the prime minister said, adding that the European Commission has not yet offered him a credible text on guarantees for Russian assets.
The EU must guarantee Euroclear that it will immediately provide funds for the return of assets to Russia, if necessary, de Wever added.
“It is possible that legal actions will be taken against Belgium or other financial institutions involved in operations in other countries … such as China and South Africa, which are more or less favorable to Russia or close to it,” de Wever said.
The risk coverage guarantees offered by the European Commission at this stage remain insufficient, the prime minister said, adding that “this comprehensive coverage should cover all types of risks, such as arbitration and other litigation.”
“We, Euroclear, must have a guarantee for liquidity in order to receive it in case of Russia’s return, we also ask for protection from countermeasures,” the official said.
The risks are really significant, considering that the Russian Central Bank recently filed a lawsuit against Euroclear in the amount of 195 billion euros ($228.8 billion) in Russian jurisdiction, the prime minister said.
“The confiscation of Euroclear’s assets in Russia may lead to a snowball effect, when Euroclear will no longer be able to meet the expectations of its customers, and the stability of the institution will be jeopardized. And that would be a financial nightmare,” he said. (UNI)
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