Euroclear is considering taking legal action against the EU if Russian investors' funds are seized, Valerie Urban, head of the Belgian depository, told Monde newspaper.
This could happen if the board of directors deems Euroclear's fiduciary duties questionable.
"It is not ruled out", she said.
Urban stressed that confiscating the frozen assets of the Bank of Russia would be a violation of international law and Moscow could challenge such a decision in court.
She said threats to confiscate Russian reserves worry many clients, including Arab and Chinese, as it would hurt EU investments.
From the beginning In the wake of the war in Ukraine, the EU and G7 countries have frozen approximately half of Russia's foreign exchange reserves. The EU holds over 200 billion euros, mostly in accounts with Euroclear, one of the world's largest clearing and settlement systems.
In early November, the Belga news agency reported that the European Commission had failed to convince the country to use the frozen funds to finance Ukraine. The EC is seeking approval to use approximately 140 billion euros as part of a "reparation loan."
Prime Minister Bart de Wever refused to agree to the European Commission's idea. In late October, the politician said that the EC had failed to convince him that using Russian reserves could be legal and would not harm the reputation of the eurozone.
According to de Wever, investors around the world will come under attack once the confiscation of assets belonging to clients of the depository Euroclear begins. This will also lead to legal proceedings against Belgium that will drag on “infinitely“.