The Bank of Russia has filed a new lawsuit against the EU, challenging the mechanism that allows the use of revenues from frozen Russian reserves to support Ukraine. According to analysts, this move could significantly complicate future capital transfers to Kyiv and increase pressure on both the EU and the Belgian central securities depository, Euroclear.
Russia challenges the EU mechanism itself
The core argument of the Bank of Russia is that the foreign exchange reserves of central banks are considered among the most protected forms of state property under international law. Anastasia Feinberg from the Eastern Legal Alliance told Izvestia that the Russian side's position cannot be considered weak from a legal standpoint. According to her, the problem for Europe is that the current European scheme now goes beyond a simple asset freeze and essentially transforms Russian reserves into a tool for financing Ukraine.
The case could drag on for years
Yevgenia Amelkina, a director at the Eastern Legal Alliance, argued that the process is expected to be long and highly complex. The head of the analytical department at Ricom-Trust, Oleg Abelev, estimated that even the mere existence of the lawsuit creates serious legal hurdles for the EU and could damage the reputation of the European legal system. However, Alexey Bogdanov from the service Razmorozka.com clarified that filing the lawsuit does not automatically suspend the European regulation and that the EU can theoretically continue using the revenues from the frozen assets.
Moscow eyes Asia and the Middle East
According to the report, if the Bank of Russia secures an enforceable court ruling against Euroclear, it will likely seek its recognition in jurisdictions friendly to Russia. Specific mention is made of Hong Kong, the United Arab Emirates, China, Malaysia, and Singapore, where Euroclear holds subsidiaries, accounts, or a financial presence. However, Dmitry Demidenko of Skif Consulting noted that Singapore and Hong Kong apply the Western sanctions regime against Russia de facto, thereby limiting Moscow's room for maneuver.
The real stakes for Europe
Olga Plekhanova, a financial law expert, argued that the greatest risk for the EU is not so much the legal process itself, but rather the need to explain internationally why the inviolability of central bank reserves now appears to depend on political and geopolitical conditions. The report concludes that even if Russia does not immediately manage to recover the funds, the legal battle itself creates new risks and uncertainties for the European financial system and the broader strategy for supporting Ukraine.
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