Russian court considers central bank's $232B lawsuit against Euroclear over seized assets

A Moscow court commenced proceedings on Friday regarding a lawsuit brought by the Russian central bank against Euroclear, the Brussels-based clearing house holding the majority of Russia’s assets frozen by the European Union. The bank is seeking 18.2 trillion rubles ($232 billion) in damages, incurred after Russia was restricted from managing its Euroclear funds and securities. The hearing is taking place behind closed doors.

The EU has frozen approximately 210 billion euros ($244 billion) in Russian assets as part of sanctions imposed following the invasion of Ukraine in February 2022, with Euroclear holding around 193 billion euros of this amount. This legal action follows the EU’s decision to abandon its initial plan to directly utilize frozen Russian assets to aid Ukraine, due to concerns about potential retaliation from Russia and difficulties in securing legal protection for Belgium.

Instead, the EU will pursue borrowing 90 billion euros on capital markets to provide Ukraine with an interest-free loan. Russia’s Central Bank has strongly criticized any use of frozen assets to support Ukraine, deeming it “illegal” and a violation of “the principles of sovereign immunity of assets.”

(Source：The Independent)