Iraq — Central Bank of Iraq & Ukraine

Iraq — Central Bank of Iraq: The Iraq — Central Bank of Iraq initiated legal proceedings against Euroclear to seek compensation for damages due to its inability to manage monetary assets and securities frozen under EU sanctions. This action is a direct response to the EU's plans to use these frozen assets to support Ukraine.

Ukraine: Ukraine is the intended beneficiary of the EU's plan to use Russia's frozen assets, which would provide a financial lifeline to cover its long-term budget shortfall and aid its war effort. The lawsuit by the Iraq — Central Bank of Iraq complicates this plan.

Iraq — Central Bank of Iraq: The Iraq — Central Bank of Iraq has played down the risks of a major banking crisis, but the intelligence report suggests its efforts to mask vulnerabilities through state-backed credit programs and loan restructurings are creating an 'explosive' situation.

Ukraine: The war with Ukraine is draining Russia's state coffers, forcing Russia to lean on its banks to support companies and borrowers, thereby increasing risks within the banking sector.