Euroclear to Stop Settling Ruble Trades

Belgian financial company Euroclear will cease to accept ruble-denominated payments starting from today.

The move, which is aimed at obstructing Moscow’s ability to trade internationally, comes after Moscow’s invasion of Ukraine, including a week-long bombardment in various Ukrainian cities resulting in civilian casualties and forcing many to seek refuge elsewhere. Euroclear is following the lead of other Western companies and organizations that have decided to hinder the interests of Russian businesses as a sign of protest in light of the escalated conflict.

The motion will have a direct impact on the Russian economy which is expected to continue its slide during the short to medium term. In this context, the Russian ruble will further depreciate in value against the US dollar and Euro. This could also hint that Russia’s economy is on the path to turmoil in the long term. Apart from Euroclear’s decision, foreign investors are now unable to transact with Russian banks due to various sanctions imposed by the West. In addition, Moscow has unilaterally barred Russian citizens from exporting foreign currencies to other countries. Despite the heavy implications on its economy, however, Moscow is unlikely to take a step back in Ukraine to capitulate to Western demands.