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Russia has launched a major legal challenge against Europe, filing a $230 billion lawsuit against financial services firm Euroclear over Russian state assets frozen since the start of the war in Ukraine.
The lawsuit, submitted by Russia’s central bank to a Moscow commercial court, marks the first concrete legal move in what Moscow has warned could become a long and messy fight with the European Union.
At the center of the dispute are about €210 billion in Russian central bank reserves, most of them held by Belgium-based Euroclear. The assets were frozen after Russia invaded Ukraine in 2022. EU leaders now want to use the funds to back loans for Ukraine’s military and civilian needs in 2026 and 2027.
EU plan sparks sharp reaction from Moscow
EU leaders agreed last week to keep the Russian assets frozen indefinitely, arguing the money should help Ukraine and deter future attacks on NATO countries, a claim Russia strongly denies.
Russia’s court confirmed it received the lawsuit on Dec. 12, with damages set at 18.2 trillion rubles, matching the full value of the frozen assets. Legal experts expect a swift ruling in Russia’s favor, though enforcing it would be far more complicated.
If Russia wins, it could try to seize Euroclear assets abroad, particularly in countries Moscow considers friendly, such as China, the UAE, Kazakhstan and Hong Kong, according to legal analysts.
Euroclear did not immediately comment.
Russia warns of retaliation
Russian officials say using the frozen assets would amount to theft and could undermine trust in Europe’s financial system.
“What investor would feel safe holding assets in the EU if property can be taken away so easily?” said Kirill Dmitriev, President Vladimir Putin’s investment envoy.
Russia’s central bank said it considers the EU’s plans illegal and vowed to pursue legal action in national courts, foreign jurisdictions and international bodies. Moscow has also warned it could retaliate by seizing European-owned assets inside Russia.
Legal and financial concerns inside Europe
The proposal has also raised concerns within Europe. Bankers and legal experts warn that confiscating sovereign assets on this scale could set a dangerous precedent.
A 2024 paper by Sweden’s central bank noted this would be the first time countries not directly involved in a war seize the reserves of a nation at war to support a third country.
Some U.S.-linked peace proposals have floated alternative ideas, including splitting the frozen funds, using part to rebuild Ukraine and reserving the rest for a future investment framework.
For now, Russia’s lawsuit signals that the economic fallout of the war is entering a new phase, one that could stretch from courtrooms to global financial markets.
*Source: Reuters
