Russia has dramatically escalated its response to Western sanctions by filing a massive compensation claim against Euroclear, the Belgian-based financial services company holding the bulk of frozen Russian assets in Europe. The Central Bank of Russia is seeking 18.2 trillion rubles — approximately $229.7 billion — arguing that the continued immobilization and potential use of these funds violates international law.
According to a statement from the Moscow Arbitration Court, the lawsuit was filed on Dec. 12, directly targeting Euroclear, one of the world’s largest securities clearing and settlement institutions. The claim centers on Russian sovereign reserves frozen by the European Union following Moscow’s full-scale invasion of Ukraine in February 2022.
Of the estimated €210 billion in Russian assets frozen across the EU, roughly €185 billion (about $217 billion) are held by Euroclear, making it the single largest custodian of immobilized Russian state funds.
The legal move comes days after EU member states agreed to indefinitely freeze Russian assets under their jurisdiction. The decision effectively removes any timeline for releasing the funds and signals a hardened European stance as the war approaches its fourth year.
EU foreign policy chief Kaja Kallas said the frozen assets would remain locked unless Russia compensates Ukraine for the extensive damage caused by the conflict. Her remarks underscored the EU’s growing willingness to treat the frozen reserves not just as leverage, but as a potential source of financial redress for Kyiv.
Moscow has reacted sharply to this position. In a separate statement, the Russian Central Bank accused the EU of engaging in “direct and indirect expropriation,” arguing that both the freezing of assets and any use of proceeds generated from them breach fundamental principles of international law and sovereign immunity.
Russian officials have repeatedly warned that attempts to redirect frozen funds toward Ukraine would trigger legal retaliation. The lawsuit against Euroclear appears to be the most concrete step yet in that strategy, transforming political disputes into high-stakes courtroom battles.
Legal experts say the case could have far-reaching implications for the global financial system. If Russia’s claims gain traction — even symbolically — they could challenge long-standing assumptions about asset custody, sanctions enforcement, and the legal responsibilities of financial intermediaries operating under government mandates.
For Euroclear, the lawsuit places the firm at the center of a geopolitical confrontation it did not create but cannot avoid. While the company has consistently stated that it is acting in full compliance with EU law, the scale of the claim introduces significant legal and reputational risks.
As the war in Ukraine grinds on, the battle over frozen assets is increasingly emerging as a parallel front — one fought not with weapons, but through courts, financial systems, and competing interpretations of international law.
Source: Newstimehub
