🔗 Share this article Russia Seeks Staggering Amount in Damages from Euroclear Regarding Frozen Assets Russia's monetary authority has declared it is seeking damages totaling $230 billion from the securities depository Euroclear. This legal step represents a clear warning from the Kremlin against proposals to utilize immobilized Russian state funds to support Ukraine. The Financial Lawsuit According to accounts in Russian news outlets, the central bank initiated a lawsuit last week for approximately 18 trillion roubles. This sum is equivalent to the stated $230 billion demand. EU leaders are set to determine later this week on a proposal to leverage around €210 billion in frozen Russian assets. This scheme involves granting Ukraine with a large loan to finance its defence and economic needs. The vast majority of these funds, totaling €185 billion, are stored at the Euroclear depository in Brussels. This institution serves as the primary keeper for the Russian frozen financial reserves. Dispute on Ownership European Union authorities have maintained that their proposal is on solid legal ground. They argue is based on the fact that title of the state assets remains with Russia, despite being it was frozen in European countries following the full-scale invasion of Ukraine. Moscow, however, has labeled any utilization of the assets as theft. It has threatened reciprocal measures, including seizing European corporate holdings within Russia. The head of Russia's sovereign wealth fund, who has taken on a key position in diplomatic talks, wrote on X that Russia "will prevail in court" and regain its assets. He warned that the EU, the common currency, and Euroclear "will suffer" from the plan. Wider Implications In comments interpreted as an attempt to create division between Europe and the United States, the official described the assets plan as "a severe assault on property rights and the international reserves system established by the United States." Euroclear declined to provide a statement on the latest lawsuit. It has previously noted it is contending with over 100 legal cases in Russian courts. Enforcement Challenges Although judges in European nations are unlikely to recognize judgments from Russian courts, experts expect Moscow to pursue implementation in nations with closer ties to the Kremlin. "Russian monetary authorities could try to implement a Russian legal ruling against Euroclear in countries such as China, Hong Kong, the UAE, Kazakhstan, and other friendly states, provided that relevant assets can be located," commented a lawyer from an international firm. EU Countermeasures EU officials indicated they are working on measures to discourage other nations from assisting any Russian legal action against EU entities. They are also crafting protections to protect EU member states with investments in Russia from what they call "unlawful expropriation." The Proposed Loan Mechanism According to the complex scheme, the EU would issue an first €90 billion loan to Ukraine, backed by the cash earned from the immobilized assets at Euroclear. Critically, Russia's ownership claim on the principal funds would remain unaffected. Ukraine would solely be obligated to return the money in the event that Russia agreed to pay compensation for the immense damage caused during the ongoing conflict. Alternative Proposals Belgium, supported by Italy, Bulgaria, and Malta, has asked the EU to examine an different approach for funding Ukraine. This involves joint EU borrowing to secure a loan, using unused funds within the European budget. This alternative move, however, demands unanimity among all 27 EU countries. Hungary's government, viewed as aligned with the Kremlin, has already expressed its objection. Commenting on Monday, the EU top diplomat, Kaja Kallas, said the reparations loan as "the most credible solution" for aiding Ukraine. "The reparations loan is based on the Russian frozen assets, meaning it is not drawn from our taxpayers' money, which is equally significant," she stated. "Furthermore, it sends a powerful message that if you cause all this damage to another nation, you must pay for the rebuilding."