Moscow Court Battle Over Euroclear Funds: A High-Stakes Legal Showdown

Moscow's Arbitration Court has started hearing a lawsuit from Russia's central bank against Euroclear, a clearing house holding billions in frozen Russian assets. The lawsuit seeks compensation for blocked access to these assets, valued at 18.2 trillion rubles, amidst EU sanctions following the Ukraine conflict.

A critical legal confrontation unfolded in Moscow as a court began addressing a lawsuit filed by the Russian central bank against Euroclear, the Brussels-based clearing entity responsible for handling a substantial portion of Russian assets frozen by the European Union.

The lawsuit demands compensation totaling 18.2 trillion rubles (USD 232 billion), citing damages from the restrictions preventing Russia from accessing its Euroclear funds and securities. The proceedings are taking place behind closed doors.

With the EU freezing 210 billion euros' worth of Russian assets in response to Russia's military actions in Ukraine, Euroclear holds 193 billion euros of these seized funds. Despite the EU's recent decision not to utilize frozen assets for Ukrainian aid, opting instead for a 90 billion euros loan to Ukraine, Russia's central bank condemned any use of the assets as illegal and contrary to international law.

(With inputs from agencies.)