🔗 Share this article Moscow Demands Staggering Sum in Compensation from Euroclear Regarding Frozen Funds Russia's monetary authority has declared it is seeking compensation amounting to $230 billion from the securities depository Euroclear. This move represents a clear warning from the Kremlin regarding plans to utilize frozen Russian sovereign assets to aid Ukraine. The Financial Lawsuit Based on reports in Russian news outlets, the monetary authority initiated a claim last week for approximately 18 trillion roubles. This sum is equivalent to the stated $230 billion claim. EU leaders are set to determine later this week regarding a proposal to leverage approximately €210 billion in immobilized Russian assets. The proposal involves providing Ukraine with a large loan to fund its defence and economic needs. Most of these assets, totaling €185 billion, are held at the Euroclear clearing house in Brussels. This institution acts as the main custodian for the Russian frozen financial reserves. Dispute on Ownership European Union authorities have maintained that their plan is on solid legal ground. They argue is based on the fact that ownership of the state assets still belongs to Russia, even though it was immobilized in European countries shortly after the full-scale military offensive of Ukraine. Moscow, however, has called any utilization of the funds as illegal appropriation. Authorities have warned of reciprocal measures, such as seizing European private investors' assets within Russia. The head of Russia's sovereign wealth fund, a figure who has assumed a key role in diplomatic talks, stated on X that Russia "will win in court" and retrieve its funds. He added that the EU, the common currency, and Euroclear "will face consequences" from the plan. Strategic Positioning In comments interpreted as an attempt to create division between Europe and the United States, the official described 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 refused to provide a statement on the latest lawsuit. The institution has previously stated it is facing over 100 lawsuits in Russian jurisdictions. Enforcement Challenges While courts in EU countries are not expected to recognize judgments from Russian courts, experts expect Moscow to seek implementation in countries with closer relations to the Kremlin. "The Bank of Russia could try to enforce a Russian court's decision against Euroclear in countries such as China, Hong Kong, the UAE, Kazakhstan, and other friendly nations, provided that relevant holdings can be located," commented a lawyer from an international firm. European Safeguards European authorities indicated they are developing measures to deter other nations from aiding any Russian legal action against EU companies. They are also designing protections to shield EU countries with assets in Russia from what they call "illegal expropriation." The Proposed Loan Mechanism According to the detailed scheme, the EU would provide an initial €90 billion loan to Ukraine, using the cash generated from the immobilized assets at Euroclear. Critically, Russia's legal 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 immense destruction caused during the ongoing war. Alternative Proposals The Belgian government, backed by Italy, Bulgaria, and Malta, has asked the EU to consider an different method for funding Ukraine. This involves common EU borrowing to fund a loan, using unused funds within the European budget. This alternative move, however, requires full agreement among all 27 EU countries. Hungary's government, considered friendly with the Kremlin, has already expressed its objection. Commenting on Monday, the EU foreign policy chief, a senior official, said the reparations loan as "the strongest option" for supporting Ukraine. "The reparations loan is based on the Russian immobilized funds, meaning it doesn't come from our public funds, which is equally important," she remarked. "It also delivers a clear message that when you do all this damage to another nation, you have to pay for the rebuilding."