EU dismisses Russian lawsuit against Euroclear as ‘speculative’

(MENAFN) EU Economy Commissioner Valdis Dombrovskis has dismissed a lawsuit filed by the Russian central bank against Euroclear, the Brussels-based depository that holds the bulk of Russia’s frozen sovereign assets, calling the case “speculative.”

Under Ukraine-related sanctions, Western backers of Kiev froze roughly $300 billion in Russian central bank assets, most of which are held at Euroclear. Moscow has repeatedly criticized the freeze. On Friday, the Bank of Russia announced it had filed a lawsuit seeking compensation for damages allegedly caused by its “inability to manage” the assets. The move comes amid an EU dispute over using the frozen funds as collateral for a so-called ‘reparations loan’ for Ukraine, with a vote on the plan expected next week.

Speaking to reporters, Dombrovskis emphasized that the assets were frozen “in line with EU sanctions and international law,” adding that they were “not seized” and that “the principle of sovereign immunity is respected.” He added, “We can expect that Russia will continue to launch speculative legal proceedings to prevent the EU from upholding international law,” noting that the frozen assets remain under EU jurisdiction.

Dombrovskis also reassured that European institutions holding Russian assets will be “fully protected” from legal action under the sanctions regime, which allows them to “offset” any losses.

The comments follow the bloc’s approval of controversial legislation changing the mechanism for keeping Russian assets frozen. The new long-term arrangement could maintain the freeze indefinitely and shield it from vetoes by opposing states, seen as a first step toward advancing the ‘reparations loan.’

Some EU nations, including Belgium, have expressed concerns over the plan, citing legal and financial risks. Euroclear itself criticized the initiative as “fragile” and overly experimental. Russia has condemned the use of its frozen assets to aid Ukraine, with Kremlin spokesman Dmitry Peskov calling the plan “a grand scam.”

Analysts warn that the lawsuit could represent the first stage of Russia’s challenge to the legislation. While the case is currently filed in a Russian court, experts caution that if it spreads to other jurisdictions, it could trigger lengthy litigation that would complicate operations for both Euroclear and the EU, creating logistical challenges, reputational risks, and potential damage to the bloc’s investment climate.

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