Russia's Central Bank to Sue Over Frozen EU Assets

Russia's central bank announced plans to sue the EU over what it calls 'illegal' asset freezes. The bank aims to reclaim damages from Euroclear through Moscow courts, amid tensions over asset use to fund Ukraine. Russia warns of retaliatory expropriation if the EU proceeds with freezing plans.

The Bank of Russia has branded the European Union's asset freeze as 'illegal actions' and is preparing legal action to recover related damages. The bank plans to pursue litigation through the Moscow Arbitration Court against the Belgian depository Euroclear.

This decision was prompted by what the Bank describes as 'illegal actions of the Euroclear depository' and the European Commission's potential mechanisms for using Russian assets without consent. Tensions continue to rise as the EU considers making these asset freezes indefinite to support Ukraine's budget in its ongoing conflict.

Euroclear, based in Brussels, is allegedly holding around 193 billion Euros in Russian assets. However, the Belgian government opposes confiscation due to the risk of legal retaliation. In response to the situation, Russia threatens reciprocal measures, including the possible confiscation of Western assets.

(With inputs from agencies.)