Euroclear CEO Warns of Global Financial Risk from Russian Asset Plan

The CEO of Euroclear, a key financial institution, has issued a stark warning. Lieve Mostrey stated that using profits from frozen Russian assets to aid Ukraine could destabilize the global financial system if not done carefully. The European Union is considering a plan to provide Ukraine with up to $104 billion. This money would come from either borrowing against, or directly using, profits generated by Russian central bank assets frozen at Euroclear since 2022. Mostrey cautioned that if the legal structure of the plan is weak, it could make Euroclear appear insolvent. This perception could trigger a global financial crisis, as the company handles over $40 trillion in assets for banks and funds worldwide. The EU insists its proposals are legally sound and would shield Euroclear from bankruptcy. Officials state the goal is to use the profits, not the frozen assets themselves, to support Ukraine. The final decision rests with EU member states, who must balance urgent Ukrainian needs against maintaining financial stability.