MOSCOW – In a significant escalation of financial tensions, Moscow’s Arbitration Court commenced proceedings on Friday in a landmark lawsuit filed by Russia’s Central Bank against Brussels-based clearinghouse Euroclear. The legal action demands compensation totaling 18.2 trillion rubles ($232 billion) for damages allegedly incurred when Russia lost control over its frozen funds and securities held by the financial institution.
The litigation unfolds against the backdrop of sweeping EU sanctions that immobilized approximately 210 billion euros ($244 billion) in Russian state assets following Moscow’s military intervention in Ukraine in February 2022. Euroclear, a key financial intermediary, holds the substantial majority of these frozen assets—approximately 193 billion euros.
Notably, the Russian legal challenge proceeds despite recent developments in EU policy. Last month, the European bloc abandoned its initial proposal to directly utilize frozen Russian assets for Ukrainian assistance after failing to secure Belgian assurances regarding protection from Russian countermeasures. Instead, the EU opted for an alternative financing mechanism: borrowing 90 billion euros on capital markets to provide Ukraine with an interest-free loan addressing its military and economic requirements for the coming two years.
The Russian Central Bank has consistently condemned any potential use of its immobilized assets as fundamentally “illegal and contrary to international law,” maintaining that such actions violate established principles of sovereign immunity protecting state assets from foreign seizure or manipulation. The court proceedings are being conducted behind closed doors, reflecting the sensitive nature of this unprecedented financial dispute.