Russia Sues Euroclear Over Frozen Assets- Gold Up Over $50

Authored by GoldFix 

The Russian  lawsuit comes as the EU is advancing a plan to potentially use income from these frozen assets to help finance Ukraine’s defense and reconstruction, including backing large loans. Russia has condemned such plans as illegal and a violation of sovereign immunity of assets.

Legal Implications

• Russia has also signaled it may challenge EU asset-use plans in other international jurisdictions and warned of possible countermeasures.

• Euroclear has indicated it’s prepared to defend itself in these legal proceedings.

GFN – MOSCOW: Russia’s central bank has filed a lawsuit against Belgium-based Euroclear, accusing the securities depository of unlawfully blocking access to frozen Russian sovereign assets, as the European Union moves closer to approving a plan to use income from those assets to finance loans for Ukraine.

The Central Bank of Russia (CBR) said Friday it had lodged the claim in a Moscow commercial court, arguing that Euroclear’s actions have prevented it from managing funds and securities belonging to the bank. “Euroclear’s actions caused harm to the Bank of Russia by preventing it from managing the funds and securities that belong to it,” the CBR said in a statement, adding that it is seeking compensation for losses.

The lawsuit comes as the EU advances a framework to raise funds for Kyiv in 2026–2027 by using income generated from roughly €210 billion of Russian central bank assets frozen across the bloc following Moscow’s invasion of Ukraine. Belgium-based Euroclear holds the largest share of those assets, about €185 billion, immobilized under EU sanctions.

On Thursday, EU ambassadors agreed to keep the Russian assets frozen indefinitely without requiring unanimous renewal every six months, a move designed to prevent potential vetoes by Hungary or Slovakia. EU finance ministers are expected to formally approve the measure on Friday, effectively linking any future unfreezing of the assets to the end of the war. EU leaders are then set to discuss the asset freeze and Ukraine loan structure at a Dec. 18 summit.

 

In a separate statement, the CBR warned it would “unequivocally” challenge any attempt by the EU to use frozen Russian assets to finance loans for Ukraine, signaling potential legal action in Russian courts, foreign jurisdictions and international tribunals. “The Bank of Russia reserves the right, without further notice, to begin applying all available legal and other mechanisms to protect its interests,” it said.

The European Commission has proposed a so-called “reparations loan” of around €90 billion, structured so that Ukraine would only be required to repay it if Russia ultimately pays war reparations, an approach aimed at avoiding outright confiscation of the assets. EU governments have accelerated work on the plan in recent weeks after a U.S.-backed peace proposal outlined an alternative use of the same frozen funds, which some European officials said appeared more favorable to Moscow.

The EU initiative faces legal and political obstacles. Belgium has sought assurances that it will not bear the financial and legal risk of potential Russian lawsuits alone, underscoring the sensitivity surrounding Euroclear’s central role in holding the bulk of Russia’s immobilized reserves.

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