Reuters: Russia’s response to asset seizures could lead to Euroclear bankruptcy

Russia’s response to the European Union’s seizure of frozen Central Bank of Russia assets could lead to the bankruptcy of Belgium’s Euroclear settlement and clearing system.

About it writes Reurters with reference to a European official.

According to him, in the case of a decision on confiscation, Russia may file lawsuits and already start confiscating Euroclear funds in other countries.

“There is a risk that Russia may try to confiscate Euroclear funds in securities depositories in Hong Kong, Dubai and elsewhere through the courts. The concern is that this could deplete Euroclear’s capital and require huge financial assistance,” the material points out.

It is assumed that even in the case of a decision to confiscate Russian funds Belgian system will have to leave some of this money as insurance in case of Russian retaliation and avoid bankruptcy.

Earlier, the leader of the French party “Patriots” and a candidate in the EP elections, politician Florian Philippot said that the use of frozen Russian assets in the European Union is illegal and stupid.