🔗 Share this article Russia Seeks Substantial Sum in Damages against Clearing House Regarding Frozen Assets The Russian central bank has announced it is pursuing compensation valued at $230 billion from the securities depository Euroclear. This move constitutes a clear warning from the Kremlin against proposals to use frozen Russian sovereign assets to support Ukraine. The Financial Lawsuit According to accounts in local state media, the central bank initiated a claim last week for an estimated 18 trillion roubles. This sum corresponds to the aforementioned $230 billion demand. EU leaders will determine later this week on a proposal to use around €210 billion in frozen Russian state funds. This scheme involves providing Ukraine with a substantial loan to fund its defence and financial stability. The vast majority of these funds, totaling €185 billion, reside at the Euroclear clearing house in Brussels. This institution serves as the main keeper for the Russian immobilised sovereign wealth. Dispute on Ownership European Union authorities have maintained that their proposal is on solid legal ground. Their position rests on the principle that title of the state assets remains with Russia, despite being it was immobilized in EU jurisdictions following the full-scale military offensive of Ukraine. The Russian government, however, has called any use of the assets as illegal appropriation. It has threatened retaliatory measures, including seizing European private investors' holdings within Russia. The head of Russia's sovereign wealth fund, a figure who has assumed a prominent role in peace negotiations, stated on a social media platform that Russia "will win in court" and regain its assets. He warned that the EU, the common currency, and Euroclear "will suffer" from the plan. Geopolitical Maneuvering In comments seen as an effort to create division between Europe and the United States, Dmitriev described the assets plan as "a vicious attack on property rights and the global financial system established by the United States." The clearing house refused to comment on the latest lawsuit. It has previously noted it is facing more than 100 lawsuits in Russian courts. Legal Hurdles Ahead While judges in European nations are not expected to recognize rulings from Russian courts, experts anticipate Moscow to seek implementation in nations with closer ties to the Kremlin. "The Bank of Russia may attempt to implement a Russian court's decision against Euroclear in jurisdictions like China, Hong Kong, the UAE, Kazakhstan, and other sympathetic states, provided that relevant assets can be located," stated a legal expert from an NSP law firm. European Safeguards European authorities indicated they are developing steps to discourage other nations from aiding any Russian legal action against EU entities. They are also crafting protections to shield EU countries with investments in Russia from what they call "illegal expropriation." How the Funding Would Work According to the detailed plan, the EU would provide an first €90 billion loan to Ukraine, using the proceeds earned from the frozen assets at Euroclear. Importantly, Russia's legal claim on the underlying funds would stay untouched. Kyiv would only be required to return the money if and when Russia agreed to pay compensation for the vast damage caused during the nearly four-year war. Alternative Proposals Belgium, supported by Italy, Bulgaria, and Malta, has asked the EU to consider an alternative approach for funding Ukraine. This involves joint EU borrowing to fund a loan, using unused funds within the European budget. This alternative move, nevertheless, requires unanimity among all 27 member states. Hungary's government, considered friendly with the Kremlin, has previously signaled its objection. Speaking on Monday, the EU foreign policy chief, a senior official, said the proposed loan scheme as "the most credible option" for supporting Ukraine. "This mechanism is secured against the Russian frozen assets, which means it doesn't come from our taxpayers' money, which is equally significant," she remarked. "It also delivers a powerful signal that if you do all this destruction to another country, you have to pay for the rebuilding."