EU Seeks to Move Russia’s Frozen Assets Out of Euroclear: What the West Risks

EU attempts to forcibly change the custodian of frozen Russian assets without the owner's consent would dismantle the foundations of Western property law, financial analyst Mikhail Belyaev told Pravda.Ru.

The expert's analysis follows a proposal by a group of MEPs, including Richard Kols, to establish a new EU instrument to act as a depository and assume legal obligations toward the Central Bank of Russia. Russia has already stated that any confiscation of assets will trigger severe countermeasures.

Belyaev argues that the principle of property inviolability is the core of the market economy. He notes that European politicians have spent several years unsuccessfully searching for a legal formula to seize these funds.

"Once property rights are violated, the entire economic structure will collapse. This means anyone could seize property from anyone—not just bank assets, but industry, shares, or any other assets, whether between states or corporations," Belyaev said.

According to the analyst, banking standards and laws strictly prohibit transferring assets between institutions without the legal owner's authorization. Deviating from this rule erodes trust in the global financial system, which has already led several nations to repatriate gold and move reserves to more stable hubs.

Belyaev suggests the only theoretical way to transfer funds without consent would be the complete liquidation of the current depository and the appointment of a successor, though he describes this as an extreme measure with unpredictable consequences.

The expert also highlighted the distinction between the assets themselves and the income they generate. While Russian funds remain as liabilities on Euroclear's balance sheet, the institution can use them for active operations to generate profit but cannot dispose of the principal capital.