Frozen assets: Bank of Russia sues Euroclear

by Ibrahim Khalil - World Editor
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Russia Challenges Euroclear Over Frozen Assets in Brussels

The Bank of Russia has initiated legal action against Euroclear, a major Belgian central securities depository, escalating pressure on European authorities regarding the indefinite freeze of Russian assets. This move follows a recent agreement among European governments to maintain the freeze until Moscow provides compensation to Ukraine for damages incurred during the conflict.

Euroclear currently holds approximately €185 billion in European bonds belonging to the Russian central bank – representing the bulk of the €210 billion in Russian assets frozen across Europe. These securities became inaccessible to Russia following the imposition of European sanctions after the invasion of Ukraine, preventing their sale or repatriation.The assets remain blocked, encompassing both the bonds themselves and the funds equivalent to their value at maturity.

The Bank of RussiaS complaint signals a challenge to the legality of the asset freeze and seeks to unlock these substantial funds. The outcome of this legal challenge could have notable implications for the future of sanctioned assets and the broader relationship between russia and European financial institutions.

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