🔗 Share this article Russia Seeks Substantial Amount in Damages against Euroclear Regarding Seized Assets Russia's monetary authority has announced it is claiming damages amounting to $230 billion from the securities depository Euroclear. This action is a direct response from the Kremlin regarding plans to use frozen Russian state assets to support Ukraine. The Substantial Demand According to accounts in Russian news outlets, the central bank initiated a claim last week for an estimated 18 trillion roubles. This amount is equivalent to the aforementioned $230 billion demand. European Union officials will decide in the coming days on a proposal to use around €210 billion in immobilized Russian state funds. This scheme involves providing Ukraine with a substantial loan to fund its defence and economic needs. The vast majority of these funds, amounting to €185 billion, are stored at the Euroclear clearing house in Brussels. Euroclear acts as the primary custodian for the Kremlin's frozen sovereign wealth. Dispute on Ownership EU officials have argued that their plan is legally sound. Their position rests on the fact that title of the sovereign wealth still belongs to Russia, despite being it was frozen in EU jurisdictions shortly after the full-scale military offensive of Ukraine. Moscow, in contrast, has labeled any use of the assets as illegal appropriation. Authorities have threatened retaliatory measures, such as seizing EU corporate holdings within Russia. The head of Russia's sovereign wealth fund, who has taken on a prominent role in diplomatic talks, wrote on X that Russia "will prevail in court" and retrieve its assets. He warned that the European Union, the euro, and Euroclear "will face consequences" from the plan. Strategic Positioning In comments seen as an effort to create division between Europe and the United States, Dmitriev characterized the assets plan as "a vicious attack on the right to ownership and the global financial system created by the United States." Euroclear declined to comment on the new legal action. The institution has previously stated it is facing over 100 legal cases in Russian courts. Enforcement Challenges Although judges in European nations are unlikely to enforce judgments from Russian tribunals, experts expect Moscow to seek implementation in countries with stronger ties to the Kremlin. "Russian monetary authorities may attempt to implement a Russian court's decision against Euroclear in jurisdictions like China, Hong Kong, the UAE, Kazakhstan, and other friendly nations, provided that relevant holdings can be identified," stated a lawyer from an NSP law firm. EU Countermeasures European authorities said they are working on steps to discourage other nations from aiding any Russian lawsuits against European companies. They are also crafting protections to protect EU countries with assets in Russia from what they call "illegal expropriation." The Proposed Loan Mechanism Under the complex scheme, the EU would issue an initial €90 billion loan to Ukraine, using the cash earned from the immobilized assets at Euroclear. Importantly, Russia's ownership claim on the principal funds would stay unaffected. Kyiv would only be required to repay the money if and when Russia consented to pay compensation for the vast destruction caused during the ongoing war. Other Funding Ideas The Belgian government, supported by Italy, Bulgaria, and Malta, has urged the EU to examine an different method for financing Ukraine. This involves common EU debt issuance to secure a loan, backed by unused funds within the EU budget. Such a proposal, however, requires unanimity among all 27 member states. The Hungarian government, considered aligned with the Kremlin, has previously expressed its opposition. Speaking on Monday, the EU top diplomat, a senior official, described the proposed loan scheme as "the strongest solution" for supporting Ukraine. "This mechanism is secured against the Russian frozen assets, meaning it is not drawn from our taxpayers' money, which is also important," she stated. "It also delivers a clear signal that if you cause all this destruction to another nation, you have to pay for the reparations."