{"id":11404,"date":"2025-12-19T12:23:20","date_gmt":"2025-12-19T13:23:20","guid":{"rendered":"http:\/\/www.globaltalenthq.com\/?p=11404"},"modified":"2025-12-22T18:41:53","modified_gmt":"2025-12-22T18:41:53","slug":"russia-ups-legal-risk-for-european-banks-over-frozen-assets-2","status":"publish","type":"post","link":"http:\/\/www.globaltalenthq.com\/index.php\/2025\/12\/19\/russia-ups-legal-risk-for-european-banks-over-frozen-assets-2\/","title":{"rendered":"Russia ups legal risk for European banks over frozen assets"},"content":{"rendered":"
Moscow has pledged to widen arbitration proceedings over the freezing of its sovereign funds beyond Belgian-based depository Euroclear<\/strong><\/p>\n Russia has said it will expand its lawsuit over frozen assets beyond Belgian-based depository Euroclear to include European banks that also hold the funds.<\/p>\n Kiev’s Western backers froze $300 billion in Russian central bank assets under Ukraine-related sanctions, around half of it held at Euroclear, but failed on Thursday to approve the use of the assets as collateral for a ‘reparations loan’ to finance Kiev’s collapsing economy and military.<\/p>\n Some EU members intend to raise €90 billion for Kiev through common debt, passing the cost of financing Ukraine to the taxpayers. Russia, which has condemned the freeze as “theft,”<\/em> said last week it is suing Euroclear for damages caused by its “inability to manage”<\/em> the assets.<\/p>\n As EU leaders were attempting to back the ‘reparations loan’ plan on Thursday, the Bank of Russia announced in a statement: “In view of the ongoing attempts by EU authorities to illegally seize and use the Bank of Russia’s assets… [it] will claim damages from European banks in a Russian arbitration court for the illegal blocking and use of its assets.”<\/em> <\/p>\n \n Read more<\/strong><\/span><\/p>\n The move is aimed at “protecting its interests,”<\/em> the regulator said, noting that the claim will cover all illegally withheld assets and lost profit.<\/p>\n The EU earlier dismissed Moscow’s lawsuit against Euroclear as “speculative,”<\/em> but some legal experts<\/a> and officials warn it could damage the bloc’s financial institutions if it spreads beyond Russia, triggering lengthy cross-border litigation, reputational harm, and risks to the EU’s investment climate.<\/p>\n Shortly after the case was filed, Fitch Ratings put the depository on watch for a possible downgrade, citing legal and liquidity risks. Kirill Dmitriev, the Russian presidential adviser on international investment, said a downgrade could drive investors to move funds elsewhere.<\/p>\n