
The provided text is an excerpt from a 2025 paper by Marco Saba titled "Kamikaze Sanctions: EU Financial Risks from Russian Asset Freezing," which critiques the European Union's aggressive sanction policy against Russia. The paper argues that these sanctions, now in their nineteenth package, are "kamikaze" because they risk undermining European financial stability by generating significant systemic risks. Specifically, the analysis focuses on the vulnerability of Central Securities Depositories (CSDs) like Euroclear, which hold hundreds of billions in frozen Russian assets and are exposed to escalating Russian lawsuits that could cause substantial losses. Saba estimates the potential indirect costs for the EU could exceed €100 billion and warns that an extreme escalation could lead to a catastrophic CSD failure, potentially triggering a "Great Taking" scenario where original asset owners lose their security entitlements. Finally, the author proposes policy alternatives, including revising the sanction strategy and utilizing Distributed Ledger Technology (DLT) for asset tokenization to mitigate these systemic dangers.