Russian Central Bank sues EU over frozen assets

The Central Bank of Russia said on Thursday that it has filed a challenge with the EU General Court against an EU regulation adopted in July which it believes interferes with its dispute with Euroclear over the freezing of Russian assets in Europe.

Source: Reuters

Details: The EU's 21st Russia sanctions package included permission for EU courts and member states not to recognise or enforce any court decisions issued by Russian courts.

Last year the central bank filed a lawsuit in Moscow seeking 18.2 billion roubles ($215.33 million) in damages from Euroclear. In May, a Moscow court upheld the claim, and in July it rejected an appeal brought by Euroclear.

The Kremlin warned that it will be a legal nightmare for the EU if it implements plans to use frozen Russian assets to support Ukraine.

The Euroclear Group is a European financial market infrastructure group that specialises in the central securities depository segment.

In June, Euroclear filed a lawsuit against the Central Bank of Russia in a Belgian civil court, seeking to block the enforcement of the Russian court ruling. The Central Bank stated on Thursday that the EU measures constitute interference in the ongoing legal proceedings in Belgium.

"These measures create disproportionate restrictions on protecting the rights of the Bank of Russia outside the EU, in particular the application of financial sanctions for violating relevant court prohibitions," the central bank noted.

The central bank may seek the seizure of Euroclear assets in other jurisdictions, particularly in countries that Russia considers friendly, such as China, the United Arab Emirates and Kazakhstan.

Background: In 2022 the EU froze €190 billion held at the Belgian depository Euroclear.