Euroclear: EU’s frozen-assets loan plan may impact markets

European governments may face increased debt costs if the EU moves forward with plans to utilize frozen Russian assets for a €140bn loan to Ukraine, warned Euroclear, the main custodian of these assets. In a letter, Euroclear’s CEO highlighted concerns that the initiative could be perceived as “confiscation,” negatively impacting investor confidence in European sovereign debt. The European Commission is preparing a legal framework for this loan, amidst ongoing debates and a push for a decision at the next EU leaders’ meeting on December 18. Meanwhile, U.S. President Trump’s proposals for investment funds in Ukraine and Russia add urgency to the discussions.

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