EU Underestimates Russian Lawsuit Over Frozen Assets

(MENAFN) EU Economy Commissioner Valdis Dombrovskis has rejected a legal action initiated by the Russian central bank against Euroclear, the Brussels-based depository responsible for holding the majority of Russia’s frozen sovereign funds, describing the lawsuit as “speculative.”

Western allies of Kiev have frozen approximately $300 billion in Russian central bank holdings under sanctions related to the conflict in Ukraine, with most of these funds kept at Euroclear.

Moscow has repeatedly criticized the freeze. On Friday, the Bank of Russia announced it is pursuing a lawsuit to claim compensation from Euroclear for losses resulting from its “inability to manage” the assets. The legal move emerges amid a disagreement among EU countries: some are advocating for using the frozen assets as collateral for a so-called ‘reparations loan’ for Kiev, while others oppose the plan. A vote on this proposal is anticipated next week.

Addressing reporters on Friday, Dombrovskis stated that the assets were frozen “in line with EU sanctions and international law,” asserting 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,” emphasizing that the frozen funds fall under EU jurisdiction.

Dombrovskis further reassured that European institutions holding Russian assets will be “fully protected” against any legal claims under the sanctions regime, which permits them to “offset” any incurred losses.

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