Russia has responded to an emerging European Union (EU) proposal to use around €210 billion in Russian central bank assets frozen in the EU to support Ukraine’s financial needs in 2026 and 2027, calling the initiative illegal.
Russia’s Central Bank on Friday filed a lawsuit in a Moscow court against Euroclear, the Brussels-based financial depository that holds most of the frozen assets, seeking damages for not being able to manage or dispose of its funds and securities.
As EU governments move to remove obstacles ahead of a key summit next week, Russia also warned it would challenge any use of the assets in national or international courts.
According to Reuters, the EU plans to indefinitely freeze approximately €210 billion of Russian sovereign assets in Europe, removing the previous requirement that all 27 member states unanimously renew sanctions every six months.
That procedural change removes a major obstacle for leaders to consider a plan to use those funds as support for a large loan to Ukraine at their summit scheduled for later this month.
European officials say Ukraine faces a financial shortfall of about €135.7 billion over the next two years to sustain its civil and defense needs amid the ongoing war, and that predictable support mechanisms are necessary.
The current proposal would treat Russia’s tied up assets as collateral for a loan, sometimes described as a “reparation loan,” that would only be repaid if Moscow compensates kyiv for war damages.
Responding to the EU plan in an official statement, the Russian central bank denounced it as a violation of international law and the principle of sovereign immunity.
“The mechanisms of direct or indirect use of the assets of the Bank of Russia, as well as any other form of unauthorized use of the assets of the Bank of Russia, are illegal and contrary to international law, including violation of the principles of sovereign asset immunity,” the bank said.
Russian analysts and officials have gone further in their public comments, with some calling the proposal a “theft” and warning of broader retaliatory measures if the EU goes ahead.
Meanwhile, Reuters reports that EU ambassadors and finance ministers are expected to finalize procedural steps this week, including an indefinite asset freeze, so leaders can debate the loan proposal at the Dec. 18 summit in Brussels.
Despite the legal challenge and political warnings from Russia, European leaders signal that they intend to proceed with measures they consider vital for sustained support for Ukraine.
(Reuters)
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