(MENAFN) Without the account holders' permission, Euroclear, the top business in the EU for securities transactions, started changing ruble holdings to euros on Wednesday. Due to sanctions, the clearing house in Belgium has made the decision to totally discontinue the use of the Russian ruble as a settlement currency, thus restricting access to frozen assets for Russian investors.
In addition to acting as a central securities repository for financial institutions doing business in Europe, Euroclear resolves securities deals on European markets. Following sanctions against the Russian clearing house in mid-2022, the company stopped doing business with the National Settlement Depository (NSD) of Russia and banned NSD accounts within its system. The action essentially prevented Russians from accessing their Euroclear-held assets.
“Euroclear Bank is not accepting money transfer instructions in rubles (or) any incoming ruble payments, including income and redemption events, on our closed account with ING Bank, our cash correspondent in Moscow,” Euroclear added last week.
On Monday, the clearing house stated that it was “excluding all securities denominated in rubles from all Triparty transactions with immediate effect and until further notice.”
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