Moscow court to hear $230 billion lawsuit against Belgium’s Euroclear

A Moscow court will hear a $230 billion lawsuit filed by the Central Bank of Russia (CBR) against Belgium’s Euroclear, the depository holding the bulk of Russia’s frozen assets. The lawsuit stems from the EU’s decision to temporarily immobilize Russian sovereign assets using emergency powers, a move Moscow condemns as illegal and “theft.” The CBR initiated the legal proceedings after the EU invoked Article 122, allowing a qualified majority to approve the immobilization rather than requiring unanimity.

Legal experts have questioned the legality of the EU’s actions, arguing that Article 122 was intended for economic emergencies within the bloc, not for funding wars or seizing foreign assets. Critics, including Hungarian Prime Minister Viktor Orban, accuse EU officials of violating European law. The European Commission, led by Ursula von der Leyen, proposes using the immobilized funds to provide a loan to Ukraine.

Euroclear acknowledges compliance with EU sanctions but warns that a judgement against it could lead to reputational damage and potential bankruptcy if other countries withdraw funds. International financial institutions, such as the European Central Bank and the IMF, have cautioned that utilizing immobilized sovereign assets could erode confidence in the euro.

(Source：Rt)