Russia says it’s suing Euroclear over plan to use Moscow’s frozen cash to help Ukraine

Russia said on Friday that its Central Bank is suing Belgian bank Euroclear in a Moscow court in response to moves by Ukraine’s European allies to use Moscow's frozen assets to help Kyiv fund its military and economy. Russia also threatened the European Union with a global campaign of retaliation to recover hundreds of billions of euros if the bloc makes any use of the funds.

The central bank said in a statement on Friday that it’s filing a lawsuit at the Moscow Arbitration Court against “unlawful actions” by the Belgium-based depository that make it “impossible for the bank to dispose of its funds and securities.”

The Bank of Russia warned in a statement that it’ll challenge any unauthorised use of the assets by the European Commission “in all available competent authorities, including national courts, judicial bodies of foreign states and international organisations.” It will also seek “enforcement of judicial decisions” in any state, the bank said.

Also Read: Reddit sues Australia over ban for under-16s, calls it intrusion on free political discourse

Russia would seek damages equal to the total amount of its frozen assets as well as additional income lost from them.

Ukraine is running out of cash after almost four years of full-scale war. The EU wants to keep Ukraine financed, as it sees Russia’s invasion as a threat to its own security, and is aiming to put to use some of the Russian sovereign assets immobilised after Moscow’s 2022 invasion of Ukraine.

Also Read: Is Trump planning Core-5 superclub with India as an alternative to G7, sidelining Europe?

Brussels calls it a “reparations loan” and has come up with a plan to prop up Ukraine’s economy.

“It’s only fair that Russia’s frozen assets should be used to rebuild what Russia has destroyed,” says Ukraine’s Volodymyr Zelensky.

German Chancellor Friedrich Merz says the assets will “enable Ukraine to protect itself effectively against future Russian attacks”.

Also Read: ‘One H-1B worker equals 10 illegal aliens, send Indian techies back’, says US pollster, slams Trump admin

Legally using the interest is seen as safe, as Russia is under sanction and the proceeds are not Russian sovereign property.

The bank’s intervention aims to ramp up pressure on European officials, many of whom are already nervous about the financial and legal consequences of using the Russian state assets to aid Ukraine.