Russia Describes EU Plan to Use Frozen Assets as Illegal

(MENAFN) Russia’s central bank declared on Friday that the European Union’s intentions to utilize its frozen holdings are unlawful, warning that it may contest the proposal.

"Mechanisms of direct or indirect use of the assets of the Bank of Russia, as well as any other forms of unauthorized use of the assets of the Bank of Russia, are illegal and contrary to international law, including violating the principles of sovereign immunity of assets," the institution stated in a release.

The central bank indicated that employing the funds to issue a reparation loan for Ukraine would face challenges in "national courts, judicial authorities of foreign states and international organizations, arbitral tribunals and other international judicial instances, followed by the enforcement of judicial decisions in the territories of UN member states."

In another announcement, the bank revealed plans to initiate legal proceedings in a Russian court against Euroclear, the Brussels-based financial clearing house that holds the frozen assets, citing losses stemming from the asset freeze.

"The actions of the Euroclear depository have caused damage to the Bank of Russia due to the inability to manage funds and securities belonging to the Bank of Russia," the statement explained.

Most of the frozen Russian assets globally—roughly $325 billion—are concentrated in Europe.

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