Russia's Central Bank sues Belgian financial institution as EU mulls using Moscow's frozen assets

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Russia’s Central Bank has filed a lawsuit against Belgian financial institution Euroclear, the Brussels-based clearing house that holds most of Moscow’s frozen assets in Europe, the bank said Friday.

It wasn’t immediately clear what the lawsuit could achieve since it was filed in Moscow.

The European Commission, the EU’s executive branch, estimates that 210 billion euros ($247 billion) worth of frozen Russian assets are held in Europe. At the end of September, Euroclear held around 193 billion euros ($225 billion) of the money.

Russia’s Central Bank said that the lawsuit, which was filed at Moscow’s Arbitration Court, would seek to recover damages it incurred when it was barred from managing and disposing of its Euroclear funds and securities.

Euroclear declined to comment on the case.

In a separate statement, Russia's Central Bank also condemned wider EU plans to use Russian assets to aid Ukraine as “illegal, contrary to international law,” arguing that they violated “the principles of sovereign immunity of assets.” It's the first time that the bank has publicly commented on the plans.

The EU froze Russia’s assets based in the 27-nation bloc shortly after the start of Russia’s full-scale war in Ukraine on Feb. 24, 2022. These sanctions must be renewed every six months, and all EU members must approve them for that to happen.

At a summit next week, EU leaders will decide whether to use tens of billions from these assets to fund Ukraine’s military and economic needs by using them as collateral for a huge loan for Kyiv.

Ukraine needs funding to aid its war effort. But such a move has never been done before, and it comes with risks.

The European Central Bank has warned that if Europeans appear willing to grab other countries’ money, it could undermine confidence in the euro currency.

Some member nations are also concerned about inviting retaliation from Russia. Belgian Prime Minister Bart De Wever has refused to approve the plan, citing fears that Russia will move against against Belgium's interests.