🔗 Share this article Russia Seeks Staggering Sum in Compensation from Euroclear Regarding Seized Assets The Russian central bank has stated it is claiming compensation totaling $230 billion against the financial institution Euroclear. This action is a clear response from the Kremlin regarding proposals to use immobilized Russian state funds to support Ukraine. The Legal Claim According to reports in Russian state media, the monetary authority initiated a claim last week for an estimated 18 trillion roubles. This figure corresponds to the stated $230 billion demand. European Union officials will determine later this week on a plan to use approximately €210 billion in immobilized Russian assets. The proposal involves providing Ukraine with a large loan to finance its defence and financial needs. Most of these assets, totaling €185 billion, are held at the Euroclear clearing house in Brussels. Euroclear serves as the primary keeper for the Russian immobilised sovereign wealth. Dispute on Ownership European Union authorities have maintained that their plan is legally sound. They argue rests on the principle that title of the state assets still belongs to Russia, despite being it was frozen in European countries shortly after the 2022 military offensive of Ukraine. Moscow, in contrast, has called any use of the assets as theft. Authorities have threatened retaliatory measures, such as seizing EU corporate assets within Russia. Kirill Dmitriev, who has taken on a prominent role in diplomatic talks, wrote on X 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 interpreted as an attempt to drive a wedge between Europe and the United States, the official described the proposal as "a severe assault on property rights and the international reserves system established by the United States." The clearing house refused to provide a statement on the latest lawsuit. The institution has in the past noted it is facing over 100 legal cases in Russian courts. Enforcement Challenges While courts in EU countries are unlikely to recognize judgments from Russian courts, experts expect Moscow to pursue enforcement in nations with stronger ties to the Kremlin. "Russian monetary authorities could try to implement a Russian court's decision against Euroclear in countries such as China, Hong Kong, the UAE, Kazakhstan, and other sympathetic nations, if relevant assets can be located," commented a legal expert from an NSP law firm. European Safeguards European authorities indicated they are working on measures to discourage other countries from assisting any Russian lawsuits against EU companies. They are also crafting safeguards to protect EU member states with investments in Russia from what they term "unlawful expropriation." How the Funding Would Work Under the detailed scheme, the EU would provide an first €90 billion loan to Ukraine, backed by the proceeds earned from the immobilized assets at Euroclear. Critically, Russia's legal claim on the principal funds would remain unaffected. Ukraine would solely be obligated to return the loan if and when Russia consented to pay reparations for the immense damage caused during the nearly four-year conflict. Other Funding Ideas Belgium, backed by Italy, Bulgaria, and Malta, has urged the EU to consider an different approach for funding Ukraine. This involves joint EU debt issuance to secure a loan, using unused funds within the European budget. Such a proposal, however, demands full agreement among all 27 EU countries. The Hungarian government, considered aligned with the Kremlin, has previously signaled its opposition. Commenting on Monday, the EU foreign policy chief, a senior official, described the reparations loan as "the most credible solution" for aiding Ukraine. "The reparations loan is based on the Russian immobilized funds, which means it doesn't come from our public funds, which is equally important," she remarked. "Furthermore, it sends a clear message that when you cause all this damage to another nation, you have to pay for the reparations."