MOSCOW, December 17. /TASS/. Investors will begin to withdraw funds to more attractive jurisdictions if the rating of the Belgian depository Euroclear is downgraded, Kirill Dmitriev, Special representative of the Russian president for economic cooperation with foreign countries, Chief Executive Officer of Russian Direct Investment Fund (RDIF), said.
"Collapse begins: after the rating downgrade, investors will start moving funds to better jurisdictions. The European Commission loves self-mutilation," he wrote on the X social network.
Fitch Ratings announced on December 16 that it had placed Euroclear Bank on Rating Watch Negative, which could result in a downgrade of its AA rating. The move reflects the agency’s view of potentially increased liquidity and legal risks for Euroclear Bank and EH (jointly Euroclear) from the European Commission's (EC) plans to use the immobilized assets of the Bank of Russia for a reparations loan to Ukraine. Fitch added that those risks are also related to a decision taken by European Union countries last week to freeze Russia’s assets indefinitely, replacing the current mechanism under which the measure is extended twice a year.
On December 12, the Council of the European Union decided to indefinitely block Russia’s sovereign assets. The European Commission hopes to secure a decision at the EU summit on December 18-19 to expropriate 210 bln euro in Russian assets, of which 185 bln euro are frozen at the Euroclear platform.