🔗 Share this article Russia Seeks Significant Sum in Compensation from Clearing House over Frozen Assets The Russian central bank has announced it is seeking compensation totaling $230 billion against the securities depository Euroclear. This action constitutes a direct warning by the Kremlin regarding plans to utilize immobilized Russian sovereign funds to aid Ukraine. The Legal Claim According to reports in local state media, the central bank initiated a lawsuit last week for approximately 18 trillion roubles. This amount corresponds to the stated $230 billion claim. European Union officials are set to determine later this week regarding a plan to use around €210 billion in immobilized Russian state funds. The proposal involves granting Ukraine with a large loan to fund its defence and economic needs. The vast majority of these funds, amounting to €185 billion, reside at the Euroclear depository in Brussels. Euroclear acts as the primary keeper for the Kremlin's frozen sovereign wealth. Divergent Legal Views EU officials have argued that their proposal is legally sound. They argue rests on the principle that title of the state assets remains with Russia, despite being it was frozen in EU jurisdictions shortly after the full-scale military offensive of Ukraine. Moscow, in contrast, has called any utilization of the assets as theft. Authorities have threatened retaliatory measures, including confiscating European private investors' assets within Russia. The head of Russia's sovereign wealth fund, a figure who has assumed a key role in peace negotiations, wrote on a social media platform that Russia "will win in court" and retrieve its assets. He added that the EU, the euro, and Euroclear "will suffer" from the plan. Strategic Positioning In comments seen as an effort to create division between Europe and the United States, Dmitriev described the proposal as "a severe assault on the right to ownership and the global financial system established by the United States." Euroclear refused to provide a statement on the latest lawsuit. The institution has in the past stated it is facing over 100 lawsuits in Russian courts. Enforcement Challenges While courts in EU countries are not expected to recognize rulings from Russian courts, analysts expect Moscow to seek enforcement in nations with closer relations to the Kremlin. "The Bank of Russia may attempt to implement a Russian legal ruling against Euroclear in jurisdictions like China, Hong Kong, the UAE, Kazakhstan, and other friendly states, provided that relevant holdings can be identified," stated a legal expert from an international firm. EU Countermeasures European authorities said they are working on measures to discourage other countries from assisting any Russian lawsuits against European companies. They are also crafting protections to protect EU countries with assets in Russia from what they term "illegal expropriation." How the Funding Would Work According to the detailed plan, the EU would issue an first €90 billion loan to Ukraine, backed by the cash generated from the immobilized assets at Euroclear. Importantly, Russia's legal claim on the underlying funds would remain unaffected. Kyiv would only be obligated to return the loan if and when Russia agreed to pay compensation for the immense destruction inflicted during the ongoing conflict. Other Funding Ideas Belgium, supported by Italy, Bulgaria, and Malta, has asked the EU to examine an different method for funding Ukraine. This involves common EU debt issuance to fund a loan, backed by unallocated funds within the European budget. Such a proposal, nevertheless, demands full agreement among all 27 EU countries. Hungary's government, viewed as aligned with the Kremlin, has previously signaled its objection. Commenting on Monday, the EU top diplomat, a senior official, described the proposed loan scheme as "the most credible solution" for supporting Ukraine. "This mechanism is based on the Russian immobilized funds, meaning it is not drawn from our public funds, which is equally significant," she remarked. "It also delivers a clear message that if you do all this damage to another nation, you have to pay for the reparations."