🔗 Share this article Moscow Demands Significant Amount in Compensation against Clearing House Regarding Frozen Assets The Russian central bank has declared it is claiming damages amounting to $230 billion from the financial institution Euroclear. This action constitutes a clear response from the Kremlin against plans to use frozen Russian state assets to aid Ukraine. The Substantial Demand According to reports in Russian state media, the central bank initiated a claim last week for an estimated 18 trillion roubles. This amount is equivalent to the stated $230 billion claim. EU leaders are set to decide in the coming days regarding a plan to use around €210 billion in immobilized Russian state funds. The proposal involves granting Ukraine with a substantial loan to fund its defence and financial stability. Most of these funds, totaling €185 billion, are held at the Euroclear depository in Brussels. This institution serves as the primary keeper for the Russian immobilised financial reserves. Dispute on Ownership European Union officials have maintained that their plan is on solid legal ground. They argue rests on the principle that ownership of the sovereign wealth still belongs to Russia, even though it was immobilized in EU countries following the full-scale invasion of Ukraine. Moscow, however, has labeled any use of the assets as theft. Authorities have threatened retaliatory actions, such as seizing EU private investors' holdings within Russia. The head of Russia's sovereign wealth fund, a figure who has assumed 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 EU, the euro, and Euroclear "will face consequences" from the proposal. Strategic Positioning In comments seen as an attempt to drive a wedge between Europe and the United States, Dmitriev described the assets plan as "a vicious attack on the right to ownership and the global financial system established by the United States." Euroclear declined to provide a statement on the latest lawsuit. It has previously stated it is facing over 100 legal cases in Russian courts. Enforcement Challenges While courts in European nations are unlikely to enforce rulings from Russian tribunals, analysts expect Moscow to pursue implementation in nations with stronger relations to the Kremlin. "Russian monetary authorities could try to implement a Russian legal ruling against Euroclear in jurisdictions like China, Hong Kong, the UAE, Kazakhstan, and other friendly states, if such assets can be located," commented a legal expert from an international firm. European Safeguards EU officials indicated they are working on measures to discourage other countries from assisting any Russian lawsuits against EU companies. They are also crafting protections to shield EU member states with assets in Russia from what they call "unlawful expropriation." The Proposed Loan Mechanism According to the complex scheme, the EU would provide an initial €90 billion loan to Ukraine, using the proceeds generated from the frozen assets at Euroclear. Importantly, Russia's ownership claim on the principal funds would remain untouched. Ukraine would solely be obligated to return the money in the event that Russia agreed to pay reparations for the vast damage inflicted during the nearly four-year war. Other Funding Ideas Belgium, backed by Italy, Bulgaria, and Malta, has urged the EU to examine an different approach for funding Ukraine. This entails joint EU borrowing to secure a loan, using unused funds within the EU budget. Such a proposal, nevertheless, requires full agreement among all 27 EU countries. The Hungarian government, considered friendly with the Kremlin, has already signaled its opposition. Commenting on Monday, the EU foreign policy chief, a senior official, described the reparations loan as "the most credible option" for aiding Ukraine. "The reparations loan is based on the Russian immobilized funds, meaning it doesn't come from our taxpayers' money, which is equally important," she remarked. "It also delivers a powerful signal that if you do all this damage to another nation, you must pay for the reparations."