Moscow court considers central bank's 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 central bank is seeking 18.2 trillion rubles (approximately $232 billion) in damages resulting from Russia’s inability to manage and dispose of its funds and securities held by Euroclear. This action follows the EU’s freezing of 210 billion euros ($244 billion) in Russian assets following the invasion of Ukraine in February 2022, with Euroclear holding around 193 billion euros of this amount.

The case is being heard behind closed doors despite the EU recently shelving its initial plan to directly utilize the frozen Russian assets to aid Ukraine, due to concerns about potential Russian retaliation and legal challenges. Instead, the EU is pursuing a plan to borrow 90 billion euros on capital markets to provide Ukraine with an interest-free loan.

The Russian Central Bank has strongly criticized any use of frozen assets to support Ukraine, labeling it “illegal, contrary to international law,” and asserting violations of “the principles of sovereign immunity of assets.”

(Source：Naharnet)