Economy Commissioner Valdis Dombrovskis has described the case as “speculative,” emphasizing that the bloc is operating within its legal rights
EU Economy Commissioner Valdis Dombrovskis has rejected a lawsuit filed by the Russian central bank against Euroclear, the Brussels-based depository that holds most of Russia’s frozen sovereign assets, referring to it as “speculative.”
Under Ukraine-related sanctions, Kiev’s Western supporters froze approximately $300 billion in Russian central bank assets, with most of it held at Euroclear.
Moscow has long criticized this move. The Bank of Russia announced on Friday that it is filing a lawsuit to seek compensation from Euroclear for damages resulting from its “inability to manage” the assets. This occurs amidst a dispute between EU countries that are advocating for using the assets as collateral for a ‘reparations loan’ for Kiev and those that are against it. A vote on the plan is expected next week.
Speaking to reporters on Friday, Dombrovskis stated that the assets were frozen “in accordance with EU sanctions and international law,” claiming that they were “not seized” and that “the principle of sovereign immunity is respected.”
“We can anticipate that Russia will continue to initiate speculative legal actions to prevent the EU from upholding international law,” he said, adding that the frozen assets are under EU jurisdiction.
Dombrovskis asserted that European institutions holding Russian assets will be “fully protected” from legal action by the sanctions regime, which enables them to “offset” any losses.
His remarks follow the bloc’s introduction of controversial legislation on Friday that changes the mechanism for keeping the assets frozen, replacing the current system with a long – term arrangement that could maintain the freeze indefinitely and protect it from vetoes by opposing states. This move is regarded as the first step towards promoting a ‘reparations loan’.
EU countries, including Belgium, have expressed concerns about the scheme, citing legal and financial risks. Euroclear has criticized it as “fragile” and overly experimental.
Russia has condemned the idea of using its assets to assist Ukraine. Kremlin spokesman Dmitry Peskov called it “a grand scam.”
Some analysts see the lawsuit against Euroclear as the initial stage in Russia’s battle against the legislation. Although the case was filed in a Russian court, they caution that if it spreads to other jurisdictions, it could lead to lengthy litigation that is harmful to both Euroclear and the EU, creating logistical obstacles, reputational risks, and damaging the bloc’s investment environment.