Russia Challenges EU Sanctions in Battle Over Frozen Assets

Russia's central bank has contested an EU regulation at the EU General Court, arguing interference in its legal dispute with Euroclear over frozen Russian assets. The Kremlin warns of legal complications if the EU uses these assets for Ukraine support. The central bank considers seeking asset seizure in 'friendly' nations.

Russia's central bank took legal action on Thursday, contesting the European Union's adoption of a regulation in July. The bank claims the regulation interferes with its ongoing legal battle with Euroclear concerning Russian assets frozen in Europe.

This regulation is part of the EU's 21st package of sanctions against Russia. It allows EU courts and member states to ignore or not enforce any legal decision issued by Russian courts. Last year, Russia's central bank filed a lawsuit in Moscow seeking damages from Euroclear, with a court ruling in Moscow upholding the decision in May. Euroclear's subsequent appeal was rejected in July.

The Kremlin has warned that the EU's plans to use frozen Russian assets to aid Ukraine could create a significant legal problem. In June, Euroclear sued Russia's central bank in a Belgian court to block the execution of the Russian ruling. On Thursday, Russia's central bank labeled the EU measure as an interruption in its ongoing litigation in Belgium.