BRUSSELS — The European Commission is considering allowing Euroclear to tap frozen Russian assets to help shield the G7’s €45 billion loan to Ukraine against potential retaliation by Moscow.

EU officials are weighing the move as a last-resort solution to compensate Euroclear, the Belgium-based bank holding these assets, for losses incurred in Russia due to its compliance with Western sanctions, according to three officials familiar with the matter who spoke to POLITICO.

Proponents argue the measure would fortify* *a multilateral scheme, finalized last week, that allocates windfall profits generated from around €200 billion in frozen Russian assets to repay the G7’s long-negotiated loan to Ukraine.

Euroclear is currently embroiled in litigation with multiple sanctioned parties who are using Russia’s highly politicized courts to contest their assets being withheld, and seeking compensation.

While Russian courts have little power to force the handover of euro or dollar assets held in Belgium to those with successful claims, they do have the power to take retaliatory action against Euroclear balances held in Russian financial institutions. These belong mainly to Western financial institutions and businesses, who would then be eligible to raise their own compensatory claims against Euroclear.

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