🔗 Share this article Moscow Demands Significant Amount in Compensation from Clearing House Regarding Frozen Assets The Russian central bank has announced it is pursuing compensation amounting to $230 billion against the securities depository Euroclear. This action is a clear response by the Kremlin regarding plans to utilize immobilized Russian sovereign funds to support Ukraine. The Financial Lawsuit Based on accounts in Russian news outlets, the monetary authority filed a lawsuit last week for roughly 18 trillion roubles. This figure corresponds to the stated $230 billion claim. EU leaders are set to determine in the coming days regarding a plan to leverage around €210 billion in frozen Russian state funds. The proposal entails providing Ukraine with a substantial loan to finance its defence and economic needs. Most of these funds, amounting to €185 billion, reside at the Euroclear depository in Brussels. Euroclear serves as the primary custodian for the Russian frozen sovereign wealth. Dispute on Ownership EU officials have argued that their plan is legally sound. They argue is based on the fact that title of the sovereign wealth still belongs to Russia, even though it was immobilized in European jurisdictions following the 2022 invasion of Ukraine. Moscow, however, has labeled any use of the assets as theft. It has warned of reciprocal actions, such as seizing European corporate holdings within Russia. The head of Russia's sovereign wealth fund, a figure who has assumed a prominent position in peace negotiations, wrote on a social media platform that Russia "will win in court" and regain its funds. He warned that the EU, the common currency, and Euroclear "will face consequences" from the plan. Strategic Positioning In comments interpreted as an attempt to drive a wedge between Europe and the United States, Dmitriev described the assets plan as "a vicious attack on the right to ownership and the international reserves system created by the United States." Euroclear refused to comment on the latest lawsuit. It has previously noted it is facing over 100 legal cases in Russian jurisdictions. Legal Hurdles Ahead While judges in European nations are unlikely to enforce rulings from Russian courts, experts expect Moscow to pursue implementation in nations with closer relations to the Kremlin. "Russian monetary authorities may attempt to enforce a Russian court's decision against Euroclear in jurisdictions like China, Hong Kong, the UAE, Kazakhstan, and other sympathetic nations, provided that relevant assets can be identified," stated a legal expert from an international firm. European Safeguards EU officials indicated they are working on measures to deter other nations from aiding any Russian legal action against EU companies. Additionally, they are crafting safeguards to protect EU member states with investments in Russia from what they term "illegal expropriation." How the Funding Would Work According to the detailed scheme, the EU would issue an initial €90 billion loan to Ukraine, backed by the proceeds earned from the frozen assets at Euroclear. Critically, Russia's ownership claim on the underlying funds would remain unaffected. Ukraine would only be required to return the loan if and when Russia consented to pay compensation for the immense damage caused during the ongoing war. Other Funding Ideas The Belgian government, backed by Italy, Bulgaria, and Malta, has asked the EU to examine an alternative approach for funding Ukraine. This entails joint EU borrowing to secure a loan, backed by unused funds within the European budget. Such a proposal, nevertheless, demands full agreement among all 27 EU countries. The Hungarian government, considered aligned with the Kremlin, has already expressed its opposition. Commenting on Monday, the EU foreign policy chief, Kaja Kallas, described the proposed loan scheme as "the strongest option" for aiding Ukraine. "The reparations loan is based on the Russian immobilized funds, which means it doesn't come from our public funds, which is equally important," she stated. "It also sends a powerful signal that if you cause all this damage to another nation, you have to pay for the reparations."