Russia’s central bank filed a lawsuit on Friday in a Moscow court against Euroclear, a Brussels-based financial services firm. Euroclear holds most of the Russian state assets frozen by the European Union. The EU plans to use these funds to help finance aid for Ukraine, according to a Politico report.
The legal move comes just days before a key European Council summit. At that meeting, EU leaders are expected to pressure Belgium to allow the release of billions of euros in frozen Russian assets to support a large loan package for Kyiv.
Moscow Accuses Euroclear of Causing Losses
In a statement, Russia’s central bank said Euroclear’s actions had caused financial damage. It also criticised EU plans to use Russian assets without consent.
“Due to the unlawful actions of the Euroclear depository that are causing losses to the Bank of Russia, and in light of mechanisms officially under consideration by the European Commission for the direct or indirect use of the Bank of Russia’s assets without its consent, the Bank of Russia is filing a claim in the Moscow Arbitration Court against the Euroclear depository to recover the losses incurred,” Politico quoted the central bank as saying.
EU Dismisses Legal Challenge
EU Economy Commissioner Valdis Dombrovskis responded to the lawsuit while speaking to finance ministers in Brussels. He said Russia would likely continue legal action to block EU efforts.
“We can expect that Russia will continue to launch speculative legal proceedings to prevent the EU from upholding international law and to pursue the legal obligation for Russia to compensate Ukraine for the damages it has done,” Dombrovskis said.
He defended the EU’s approach and stressed its legal strength.
“Our proposal is legally robust and fully in line with the EU and public international law,” he added.
Belgium’s Concerns Over Asset Release
Belgium has remained cautious about releasing frozen Russian state assets. Officials have warned that such a move could later force the country to repay Moscow if courts rule against the EU.
Around €185 billion of frozen Russian assets sit with Euroclear in Brussels. Another €25 billion are spread across private banks in other EU countries.
EU Acts to Keep Assets Frozen
With uncertainty still surrounding the proposed loan to Ukraine, EU ambassadors took action on Thursday. They gave the European Commission emergency powers to keep Russian state assets frozen indefinitely.
This decision ensures the funds remain blocked until Russia pays post-war reparations. It also reduces the risk that pro-Russian governments, such as Hungary or Slovakia, could push to return the money to Moscow.
Limits of Russia’s Legal Reach
Russian courts cannot force Belgium to release assets held by Euroclear. However, they can target Euroclear accounts held inside Russia.
The EU has prepared for this risk. A legal mechanism adopted in 2024 allows the European Commission to compensate Euroclear for any losses caused by Russian retaliation linked to sanctions compliance. This measure effectively shields the company from financial pressure.
What Comes Next
As EU leaders prepare for their summit, the legal and political battle over frozen Russian assets continues. The outcome could shape future funding for Ukraine and set a lasting precedent for how the EU handles sanctioned state assets.