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(Bloomberg) -- Euroclear Ltd. Chief Executive Officer Valerie Urbain warned of unintended consequences if the European Union were to confiscate frozen assets from Russia’s central bank.

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US President Donald Trump is pressuring Ukraine to negotiate with Russia and certain options for peace will come with risks, Urbain told Bloomberg Television at the World Economic Forum in Davos on Friday. Russia’s frozen assets could be an element in the negotiations, she added, acknowledging that some officials are interested in pushing ahead with a confiscation.

“There could always be also countermeasures from Russia which could further destabilize the financial markets,” Urbain said.

The Brussels-based clearing house holds the bulk of Russian central bank assets that have been frozen under sanctions by the EU and Group of Seven countries. Urbain stressed the importance of transferring not only assets, but also liabilities, in case of a confiscation by EU member states to protect Euroclear from later claims by Russia.

“We have seen the case of the Iranian assets over 20 years later,” Urbain said. “So I think this is not something which is theoretical.”

EU Economy Commissioner Valdis Dombrovskis said in December that the bloc should consider taking steps beyond freezing assets, including possibly seizing them to compensate Ukraine for damage from Russia’s invasion.

So far, the EU has only used profits generated by the sanctioned Russian assets to provide aid to Ukraine, as full confiscation remains much more controversial under international law. Under a G-7 plan, Kyiv’s allies approved a mechanism where the profits are being used to underpin a €50 billion ($52.5 billion) loan package for Kyiv.

--With assistance from Jorge Valero.

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