Euroclear warned the EU about the threat of debt growth due to the use of Russian assets

The European Union (EU) may face an increase in debt obligations if it does not stop the implementation of plans to use frozen Russian assets in favor of Ukraine. This was reported on November 27 by the Financial Times (FT) newspaper with reference to a letter from the Belgium-based Euroclear depository to the head of the European Commission (EC) Ursula von der Leyen and President of the EU Council Antonio Costa.

The publication, referring to the text of the letter, notes that the use of Russian assets will be perceived as confiscation outside the EU and will frighten investors of European government debt.

"Forcing Euroclear to invest <...> to implement the scheme will be considered as confiscation, which will cause retaliatory measures from Russia and potential legal issues. This will lead to compensation payments from EU member states and subsequently to financial risks for them," the FT quotes the text of the document.

Gathered for business: the West cannot come to an agreement on the assets of the Russian Federation

The ECB and a number of countries are skeptical about the "reparation loan"

The head of the European Commission (EC) announced earlier on Wednesday that she would soon submit proposals for the withdrawal of frozen assets of the Russian Federation. According to her, the commission has submitted a document with options for action. The next step is the EC's willingness to submit a legal text, she said.

On November 25, Belgian Minister of Defense and Foreign Trade Theo Franken announced that Belgium had convinced Italy of the risks of expropriating frozen assets of Russia. He noted that Belgium would not seize the assets of the Russian Federation and transfer them to Ukraine without European guarantees against lawsuits and demands for a refund.

Russian Foreign Ministry spokeswoman Maria Zakharova warned on November 23 that the EU would expect a "painful response" in case of any actions to confiscate Russian assets.

All important news is on the Izvestia channel in the MAX messenger.