Russia’s Central Bank has launched a major lawsuit in Moscow against Euroclear, the Brussels-based financial giant. The target? A staggering 18.2 trillion rubles (or $232 billion) of Russian assets currently frozen in Europe. These funds and securities were locked down as part of European Union sanctions following the Ukraine conflict in February 2022, with Euroclear holding the bulk – around 193 billion euros.
Moscow’s Central Bank argues that being barred from managing these assets has caused immense damage, and they are now demanding this colossal sum back. The case is proceeding behind closed doors, highlighting the sensitivity and high stakes involved.
Interestingly, the EU recently adjusted its plans for these frozen assets. While initially considering using them to aid Ukraine, the bloc ultimately decided against it. Instead, the EU will borrow 90 billion euros from financial markets, providing an interest-free loan to Ukraine for its military and economic needs. This shift came after concerns from Belgium about potential Russian retaliation if the assets were directly seized for Ukraine.
Russia has vehemently condemned the freezing of its assets, labeling the move “illegal” and a direct violation of international law. They argue it disregards the crucial principle of “sovereign immunity of assets,” which protects a nation’s property from foreign seizure. This lawsuit marks a significant escalation in the ongoing financial and legal battle stemming from international sanctions.
