Russia's central bank has filed a lawsuit in Moscow seeking damages from Brussels-based depository Euroclear over the freezing of its state assets and said it would challenge European plans to permanently freeze those reserves.
The central bank announced today, as reported by the Financial Times, that Euroclear, which holds 185 billion euros of the total 210 billion euros of Russian assets frozen by Europe, "through illegal actions prevented access to funds and securities belonging to the Bank of Russia."
The lawsuit represents Russia's first "warning shot" at Europe, as Brussels plans to indefinitely freeze the assets next week to secure a €90 billion loan for Ukraine. Belgium, where most of the assets are located, opposes the idea, fearing Russian retaliation.
The European Commission believes that courts outside the EU have no jurisdiction in this case, the FT reports. However, the Russian central bank said it would “unconditionally challenge” attempts to freeze its assets before international courts, both in “friendly” and “hostile” countries.
As stated, the bank is seeking compensation based on “the amount of blocked Bank of Russia funds, the value of blocked securities, and lost expected profits.”
It added that it would use "all available legal and other mechanisms to protect its interests" if European plans to use Russian property were implemented.
Kiev's Western allies froze about $300 billion in Russian foreign exchange reserves shortly after President Vladimir Putin ordered an invasion of Ukraine in 2022. Those funds are currently being frozen every six months, through a process that requires unanimous consent from all 27 EU members, including opponents of the scheme, such as Hungary.
But the European Commission has proposed using emergency powers to permanently freeze 210 billion euros to finance a 90 billion euro loan, hoping it will bolster Kiev's resistance to the Russian invasion and help Europe secure a role in US-led peace talks. EU countries agreed on the proposal on Thursday, ahead of a debate on the loan by EU leaders next week.
This move is opposed by the US, which wants most of the assets to be channeled into two US-led investment funds, as part of the draft peace plans that the Donald Trump administration is currently negotiating with Russia.
Belgium has called for other member states to share the risks of future Russian legal challenges. However, France - whose commercial banks hold around 18 billion euros in Russian assets - has opposed the idea.
Vladimir Putin said last month that the Kremlin had drawn up plans to respond to the EU scheme, but gave no further details. Moscow is also considering seizing assets held in Russia by Euroclear and Western investors, as well as the outright nationalization of Western companies in Russia. Russia has already frozen 17 billion euros in Western assets held in the country by Euroclear.
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