🔗 Share this article Russia Seeks Substantial Sum in Damages from Euroclear over Frozen Assets The Russian central bank has stated it is claiming damages valued at $230 billion against the securities depository Euroclear. This legal step is a clear warning from the Kremlin regarding plans to use immobilized Russian state assets to support Ukraine. The Financial Lawsuit According to accounts in local state media, the monetary authority initiated a claim last week for an estimated 18 trillion roubles. This amount is equivalent to the stated $230 billion demand. European Union officials will determine later this week on a plan to use approximately €210 billion in frozen Russian state funds. The proposal involves granting Ukraine with a substantial loan to fund its defence and economic stability. Most of these assets, amounting to €185 billion, reside at the Euroclear depository in Brussels. This institution serves as the main custodian for the Russian immobilised financial reserves. Dispute on Ownership EU authorities have maintained that their proposal is on solid legal ground. They argue rests on the principle that ownership of the state assets still belongs to Russia, even though it was immobilized in EU countries following the full-scale invasion of Ukraine. The Russian government, however, has labeled any use of the assets as illegal appropriation. It has warned of reciprocal actions, such as confiscating EU corporate assets within Russia. Kirill Dmitriev, a figure who has assumed a prominent role in peace negotiations, wrote on a social media platform that Russia "will win in court" and regain its funds. He warned that the EU, the euro, and Euroclear "will suffer" from the plan. Geopolitical Maneuvering In comments interpreted as an attempt to drive a wedge between Europe and the United States, the official characterized the proposal as "a severe assault on the right to ownership and the global financial system established by the United States." The clearing house refused to provide a statement on the new legal action. It has previously noted it is facing more than 100 lawsuits in Russian courts. Legal Hurdles Ahead While judges in EU countries are not expected to enforce judgments from Russian courts, analysts anticipate Moscow to seek enforcement in countries with closer ties to the Kremlin. "The Bank of Russia may attempt to enforce a Russian legal ruling against Euroclear in countries such as China, Hong Kong, the UAE, Kazakhstan, and other sympathetic nations, if such holdings can be identified," stated a legal expert from an international firm. EU Countermeasures European authorities indicated they are developing measures to discourage other nations from assisting any Russian lawsuits against EU entities. Additionally, they are designing protections to shield EU countries with investments in Russia from what they term "illegal expropriation." The Proposed Loan Mechanism Under the detailed plan, the EU would provide an initial €90 billion loan to Ukraine, backed by the proceeds earned from the immobilized assets at Euroclear. Critically, Russia's legal claim on the underlying funds would remain untouched. Ukraine would only be obligated to return the money if and when Russia consented to pay compensation for the immense damage inflicted during the ongoing war. Other Funding Ideas Belgium, backed by Italy, Bulgaria, and Malta, has asked the EU to examine an alternative approach for financing Ukraine. This entails common EU borrowing to secure a loan, backed by unused funds within the European budget. This alternative move, however, requires full agreement among all 27 EU countries. Hungary's government, considered aligned with the Kremlin, has already expressed its objection. Commenting on Monday, the EU foreign policy chief, Kaja Kallas, said the proposed loan scheme as "the strongest option" for aiding Ukraine. "This mechanism is based on the Russian frozen assets, which means it is not drawn from our taxpayers' money, which is equally important," she remarked. "It also sends a clear signal that when you cause all this damage to another nation, you have to pay for the rebuilding."