By Ben Aris in Berlin The Fitch ratings agency warned that an EU plan to seize Russia’s frozen assets would expose Euroclear to significant legal and financial risks and downgraded the European depository with a negative watch outlook on December 17.

Fitch highlights liquidity risks for central securities depository if EU plan for a loan to Ukraine goes ahead

Ratings agency Fitch has placed the ratings of Euroclear Bank on "rating watch negative", citing potential growth in legal and liquidity risks due to EU plans to use frozen Russian assets for a reparations loan to Ukraine.

Kirill Dmitriev, head of the Russian Direct Investment Fund (RDIF) and special presidential representative for investment and economic cooperation with foreign countries, on December 17 allowed a collapse in the European Union (EU) if the investment rating of the Euroclear depository was lowered due to the confiscation of Russian assets.

MOSCOW. Dec 17 (Interfax) - The Central Bank of Russia's lawsuit application against Euroclear Bank S.A./N.V. has been taken up, the press service of the Moscow Arbitration Court told Interfax. The preliminary court hearing is scheduled for January 16 at 10:00 a.m. Moscow time.

A Moscow court will hold a preliminary hearing on Jan. 16 on the Russian central bank’s lawsuit against Euroclear, the Belgian securities depository. The