Russia and EU Clash Over Central Bank Assets

The European Union's proposal to use assets from Russia's central bank has been labeled illegal by the bank. The EU suggested utilizing frozen Russian assets to support Ukraine financially in 2026-27. Russia's central bank plans to contest this move in various judicial forums, asserting international law violations.

On Friday, Russia's central bank declared that the European Union's proposals to utilize its assets are illegal, warning of protective measures.

The bank criticized any indirect or direct attempts by the EU to use its assets, citing a breach of international law and sovereign immunity principles. A December 3 press release by the EU Commission outlined plans to assist Ukraine financially with a focus on 2026-2027.

The EU's strategy involves borrowing frozen Russian assets to finance reparations loans for Ukraine. Such actions, Russian officials warn, will provoke severe responses and face legal challenges across international courts and tribunals.

(With inputs from agencies.)