🔗 Share this article Russia Seeks Staggering Sum in Compensation from Clearing House Regarding Seized Assets The Russian central bank has announced it is claiming compensation amounting to $230 billion from the securities depository Euroclear. This move represents a direct response by the Kremlin regarding plans to utilize frozen Russian state funds to support Ukraine. The Financial Lawsuit Based on accounts in local state media, the central bank filed a claim last week for approximately 18 trillion roubles. This sum is equivalent to the stated $230 billion claim. European Union officials are set to decide later this week on a plan to leverage around €210 billion in frozen Russian assets. The proposal involves granting Ukraine with a large loan to finance its military and financial stability. The vast majority of these assets, amounting to €185 billion, are held at the Euroclear clearing house in Brussels. This institution serves as the primary custodian for the Kremlin's immobilised sovereign wealth. Dispute on Ownership European Union authorities have argued that their proposal is on solid legal ground. Their position rests on the principle that ownership of the sovereign wealth still belongs to Russia, despite being it was frozen in EU jurisdictions shortly after the 2022 military offensive of Ukraine. The Russian government, in contrast, has called any utilization of the funds as illegal appropriation. It has threatened reciprocal measures, including seizing European corporate assets within Russia. The head of Russia's sovereign wealth fund, a figure who has taken on a key position in diplomatic talks, stated on a social media platform that Russia "will prevail in court" and retrieve its funds. He warned that the EU, the common currency, and Euroclear "will face consequences" from the plan. Strategic Positioning With statements interpreted as an attempt to drive a wedge between Europe and the United States, Dmitriev described the assets plan as "a vicious assault on the right to ownership and the international reserves system established by the United States." The clearing house declined to provide a statement on the new legal action. The institution has in the past noted it is contending with over 100 legal cases in Russian jurisdictions. Legal Hurdles Ahead Although judges in EU countries are not expected to recognize judgments from Russian courts, analysts anticipate Moscow to pursue enforcement in countries with closer relations to the Kremlin. "Russian monetary authorities may attempt to enforce a Russian legal ruling against Euroclear in countries such as China, Hong Kong, the UAE, Kazakhstan, and other friendly nations, if relevant assets can be located," stated a lawyer from an international firm. European Safeguards European authorities said they are working on steps to discourage other nations from assisting any Russian legal action against EU companies. They are also designing protections to protect EU member states with assets in Russia from what they term "illegal expropriation." How the Funding Would Work Under the complex plan, the EU would issue an first €90 billion loan to Ukraine, using the cash earned from the immobilized assets at Euroclear. Critically, Russia's ownership claim on the principal funds would remain unaffected. Ukraine would only be required to repay the loan if and when Russia agreed to pay reparations for the immense destruction caused during the nearly four-year conflict. Other Funding Ideas The Belgian government, backed by Italy, Bulgaria, and Malta, has urged the EU to consider an different approach for funding Ukraine. This entails joint EU debt issuance to secure a loan, backed by unallocated funds within the European budget. Such a proposal, nevertheless, demands unanimity among all 27 member states. Hungary's government, considered friendly with the Kremlin, has previously signaled its objection. Commenting on Monday, the EU foreign policy chief, a senior official, described the proposed loan scheme as "the most credible solution" for supporting Ukraine. "This mechanism is secured against the Russian immobilized funds, which means it doesn't come from our taxpayers' money, which is equally significant," she remarked. "Furthermore, it delivers a powerful signal that when you cause all this damage to another nation, you must pay for the rebuilding."