🔗 Share this article Russia Seeks Staggering Sum in Damages against Euroclear over Seized Funds The Russian central bank has stated it is claiming damages amounting to $230 billion from the financial institution Euroclear. This legal step is a clear warning by the Kremlin against plans to utilize immobilized Russian state funds to aid Ukraine. The Legal Claim Based on reports in local news outlets, the central bank filed a claim last week for approximately 18 trillion roubles. This figure corresponds to the aforementioned $230 billion claim. EU leaders are set to determine in the coming days regarding a plan to leverage approximately €210 billion in immobilized Russian assets. This scheme involves providing Ukraine with a large loan to fund its military and economic stability. The vast majority of these funds, amounting to €185 billion, are held at the Euroclear depository in Brussels. Euroclear serves as the main keeper for the Russian immobilised financial reserves. Divergent Legal Views EU authorities have maintained that their plan is on solid legal ground. They argue is based on the fact that ownership of the sovereign wealth remains with Russia, despite being it was frozen in EU jurisdictions following the full-scale military offensive of Ukraine. The Russian government, in contrast, has called any utilization of the funds as theft. Authorities have warned of retaliatory measures, including confiscating European private investors' assets within Russia. Kirill Dmitriev, a figure who has taken on a key position in peace negotiations, stated on a social media platform that Russia "will win in court" and retrieve its assets. He warned that the European Union, the common currency, and Euroclear "will suffer" from the plan. Strategic Positioning In comments seen as an attempt to drive a wedge between Europe and the United States, Dmitriev characterized the assets plan as "a vicious attack on the right to ownership and the global financial system established by the United States." The clearing house declined to provide a statement on the new legal action. It has in the past stated it is facing more than 100 lawsuits in Russian courts. Legal Hurdles Ahead While judges in European nations are not expected to enforce judgments from Russian tribunals, experts expect Moscow to pursue implementation in nations with closer relations to the Kremlin. "Russian monetary authorities may attempt to implement a Russian court's decision against Euroclear in jurisdictions like China, Hong Kong, the UAE, Kazakhstan, and other sympathetic states, provided that such assets can be located," commented a lawyer from an international firm. EU Countermeasures EU officials indicated they are working on steps to deter other countries from assisting any Russian lawsuits against European entities. They are also crafting safeguards to shield EU countries with assets in Russia from what they term "unlawful expropriation." How the Funding Would Work According to the detailed plan, the EU would provide an first €90 billion loan to Ukraine, using the proceeds earned from the frozen assets at Euroclear. Critically, Russia's ownership claim on the principal funds would stay unaffected. Kyiv would only be obligated to return the money if and when Russia consented to pay compensation for the vast destruction inflicted during the nearly four-year war. Other Funding Ideas Belgium, backed by Italy, Bulgaria, and Malta, has asked the EU to consider an alternative approach for funding Ukraine. This entails joint EU debt issuance to secure a loan, using unallocated funds within the EU budget. Such a proposal, however, demands unanimity among all 27 EU countries. Hungary's government, viewed as aligned with the Kremlin, has previously signaled its opposition. Commenting on Monday, the EU foreign policy chief, Kaja Kallas, described the proposed loan scheme as "the strongest solution" for aiding Ukraine. "The reparations loan is secured against the Russian immobilized funds, which means it doesn't come from our taxpayers' money, which is also significant," she stated. "It also delivers a clear message that if you cause all this destruction to another country, you have to pay for the rebuilding."