Legal Battle Intensifies Over Frozen Russian Assets

Russia's central bank claims EU plans to utilize its assets are illegal, filing a lawsuit against Euroclear in Moscow. The lawsuit follows the EU's possible decision to indefinitely freeze Russian central bank assets. Russian officials warn of severe reactions, considering legal actions in various jurisdictions.

In a dramatic escalation, Russia's central bank declared the European Union's intentions to use its assets as illegal, vowing to safeguard its interests through all available means. The institution announced legal proceedings against Euroclear in Moscow over allegations that actions taken by the Brussels-based financial firm hampered its financial agency capabilities.

On Friday, the EU was primed to freeze Russian central bank assets in Europe, a move partially aimed at supporting Ukraine. Russia countered, emphasizing that using its assets, either directly or indirectly, breached international laws and violated principles of sovereign immunity.

Responding to the developments, Russian legal expert Evgeny Kovalyov noted that while the lawsuit was largely symbolic, it set the stage for a prolonged jurisdictional conflict. Meanwhile, Russia is exploring repercussions, including asset confiscation from EU citizens in reaction to the alleged misuse of its financial properties brewing a complex legal conundrum.

(With inputs from agencies.)