Russia's monetary authority has stated it is claiming compensation valued at $230 billion from the securities depository Euroclear. This move constitutes a clear response by the Kremlin regarding plans to utilize immobilized Russian sovereign funds to support Ukraine.
According to reports in local news outlets, the central bank initiated a claim last week for roughly 18 trillion roubles. This amount is equivalent to the stated $230 billion demand.
European Union officials will determine later this week on a plan to leverage around €210 billion in immobilized Russian state funds. This scheme involves providing Ukraine with a substantial loan to finance its defence and financial needs.
The vast majority of these funds, totaling €185 billion, reside at the Euroclear clearing house in Brussels. Euroclear acts as the main keeper for the Russian immobilised sovereign wealth.
European Union officials have maintained that their plan is on solid legal ground. Their position is based on the fact that ownership of the state assets remains with Russia, despite being it was immobilized in EU jurisdictions following the full-scale military offensive of Ukraine.
Moscow, however, has called any utilization of the assets as illegal appropriation. Authorities have warned of reciprocal actions, including seizing European private investors' holdings within Russia.
The head of Russia's sovereign wealth fund, who has taken on a prominent position in diplomatic talks, wrote on X that Russia "will win in court" and retrieve its assets. He added that the EU, the euro, and Euroclear "will suffer" from the plan.
In comments seen as an attempt to drive a wedge between Europe and the United States, the official described the proposal as "a vicious attack on the right to ownership and the international reserves system established by the United States."
Euroclear refused to provide a statement on the latest legal action. The institution has previously noted it is facing over 100 legal cases in Russian jurisdictions.
Although courts in EU countries are not expected to enforce judgments from Russian tribunals, experts anticipate Moscow to pursue implementation in countries with stronger relations to the Kremlin.
"The Bank of Russia could try to implement a Russian legal ruling against Euroclear in jurisdictions like China, Hong Kong, the UAE, Kazakhstan, and other sympathetic nations, if relevant assets can be identified," stated a lawyer from an international firm.
EU officials indicated they are working on steps to deter other countries from assisting any Russian legal action against EU companies. Additionally, they are designing safeguards to protect EU member states with investments in Russia from what they call "illegal expropriation."
Under the complex plan, the EU would issue an initial €90 billion loan to Ukraine, using the proceeds earned from the immobilized assets at Euroclear. Critically, Russia's legal claim on the underlying funds would remain untouched.
Kyiv would only be obligated to return the loan in the event that Russia agreed to pay reparations for the vast damage inflicted during the nearly four-year war.
The Belgian government, backed by Italy, Bulgaria, and Malta, has asked the EU to examine an alternative method for funding Ukraine. This involves common EU debt issuance to fund a loan, using unused funds within the European budget.
Such a proposal, nevertheless, requires full agreement among all 27 member states. Hungary's government, viewed as aligned with the Kremlin, has already expressed its objection.
Speaking on Monday, the EU top diplomat, a senior official, said the reparations loan as "the strongest option" for supporting Ukraine. "This mechanism is secured against the Russian frozen assets, meaning it is not drawn from our taxpayers' money, which is also important," she remarked. "Furthermore, it sends a powerful message that if you do all this damage to another country, you must pay for the reparations."
Escritora y analista cultural con experiencia en medios internacionales, apasionada por explorar cómo las ideas locales impactan en el mundo.
