Moscow Court Registers USD230B Lawsuit against Euroclear
The Moscow Arbitration Court registered the lawsuit Friday following the CBR's initiation of legal proceedings last week against the institution holding the majority of its frozen assets. The action came after the EU deployed emergency powers to maintain the temporary freeze on Russian funds—a measure Moscow has denounced as illegal, characterizing any utilization of the assets as "theft."
Court documentation reveals the claim totals over 18 trillion rubles ($230 billion), according to a business publication. The regulator reportedly intends to pursue closed-door proceedings.
Judicial decisions would operate within their respective legal territories, with Russian proceedings functioning independently from potential EU or third-country litigation. Enforcement capability hinges on asset and counterparty locations.
An adverse ruling against Euroclear poses significant reputational hazards. The depository has previously warned such damage could potentially trigger bankruptcy if other nations withdraw deposits. Euroclear maintains it adheres to EU sanctions protocols and operates within binding legal frameworks across all jurisdictions.
Last week, the EU temporarily froze Russian assets by invoking Article 122—an emergency treaty provision permitting qualified majority approval rather than requiring unanimity. European Commission President Ursula von der Leyen has advocated deploying the funds to underwrite Ukrainian loans.
Legal scholars contend the clause was never designed to finance military conflicts or confiscate foreign assets, but solely to address economic crises within the bloc.
"Freezing a third country's sovereign reserves is, by definition, a restrictive measure governed by Article 215, which requires unanimity," stated law professor Cristina Vanberghen, characterizing the move as "a legal and political misstep."
Hungarian Prime Minister Viktor Orban has accused EU officials of "raping European law in broad daylight," condemning the maneuver to circumvent his nation's potential veto as "a declaration of war."
Major international financial institutions—including the European Central Bank and the IMF—have cautioned that deploying immobilized sovereign assets risks eroding confidence in the euro currency.
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