🔗 Share this article Moscow Demands Staggering Amount in Compensation against Clearing House over Frozen Funds Russia's monetary authority has stated it is seeking compensation totaling $230 billion against the securities depository Euroclear. This legal step constitutes a direct warning by the Kremlin against plans to use immobilized Russian state assets to support Ukraine. The Legal Claim According to accounts in Russian state media, the central bank initiated a lawsuit last week for an estimated 18 trillion roubles. This figure corresponds to the aforementioned $230 billion demand. European Union officials are set to decide in the coming days regarding a proposal to leverage around €210 billion in frozen Russian state funds. This scheme involves providing Ukraine with a substantial loan to finance its defence and economic needs. The vast majority of these assets, totaling €185 billion, are held at the Euroclear depository in Brussels. Euroclear acts as the main keeper for the Kremlin's immobilised financial reserves. Dispute on Ownership EU officials have maintained that their plan is legally sound. Their position rests on the fact that title of the sovereign wealth remains with Russia, even though it was immobilized in European countries shortly after the 2022 invasion of Ukraine. The Russian government, in contrast, has labeled any use of the assets as theft. Authorities have threatened reciprocal measures, such as confiscating EU corporate holdings within Russia. The head of Russia's sovereign wealth fund, a figure who has taken on a key position in diplomatic talks, wrote on X that Russia "will win in court" and retrieve its funds. He warned that the European Union, the euro, and Euroclear "will face consequences" from the plan. Geopolitical Maneuvering In comments seen as an effort to create division between Europe and the United States, Dmitriev characterized the assets plan as "a vicious assault on the right to ownership and the global financial system created by the United States." Euroclear refused to provide a statement on the latest legal action. The institution has previously stated it is contending with more than 100 legal cases in Russian jurisdictions. Enforcement Challenges Although courts in EU countries are unlikely to enforce rulings from Russian courts, analysts anticipate Moscow to seek implementation in nations with closer ties to the Kremlin. "Russian monetary authorities may attempt to implement a Russian legal ruling against Euroclear in countries such as China, Hong Kong, the UAE, Kazakhstan, and other sympathetic nations, if such assets can be located," commented a legal expert from an international firm. European Safeguards European authorities said they are working on steps to deter other countries from assisting any Russian lawsuits against EU entities. Additionally, they are designing protections to protect EU countries with investments in Russia from what they call "unlawful expropriation." How the Funding Would Work Under the detailed scheme, the EU would issue an first €90 billion loan to Ukraine, using the proceeds generated from the frozen assets at Euroclear. Importantly, Russia's ownership claim on the underlying funds would remain untouched. Ukraine would solely be obligated to repay the loan in the event that Russia agreed to pay reparations for the vast damage caused during the nearly four-year war. Other Funding Ideas The Belgian government, supported by Italy, Bulgaria, and Malta, has asked the EU to consider an alternative approach for funding Ukraine. This entails common EU borrowing to fund a loan, backed by unused funds within the EU budget. This alternative move, however, requires unanimity among all 27 member states. The Hungarian government, considered aligned with the Kremlin, has previously signaled its objection. Speaking on Monday, the EU top diplomat, a senior official, described the proposed loan scheme as "the strongest solution" for supporting Ukraine. "The reparations loan is secured against the Russian immobilized funds, meaning it doesn't come from our public funds, which is also important," she remarked. "It also delivers a powerful signal that when you do all this destruction to another nation, you have to pay for the reparations."