A "rain" of lawsuits regarding the seizure of Russian assets is falling upon Euroclear. Since 2022, approximately 200 lawsuits filed by Russian citizens and companies have targeted the Belgian-based Euroclear, where frozen Russian assets are held. Most of these legal actions relate to the seizure of shares from various issuers, of which the plaintiffs are the rightful owners. These specific assets are held in accounts of the National Settlement Depository of Russia, which are open at Euroclear.
The largest lawsuits of Russian companies
Excluding the lawsuit filed by the Central Bank of Russia, the largest financial claims against Euroclear come from the following Russian organizations:
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The management company Alfa-Capital is seeking compensation of approximately 319 billion rubles.
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The management company Pervaya (formerly Sber Asset Management) estimates its losses at approximately 140 billion rubles.
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Sberbank reports losses of approximately 32 billion rubles.
The EU plans
The European Union, seeking ways to cover Ukraine's defense and budgetary needs for 2026 and 2027, plans to utilize up to 165 billion euros from the assets of the central bank of Russia that have been frozen in Europe. Euroclear, the Belgian Central Securities Depository (CSD), held bonds for the central bank of Russia at the start of the Russian invasion of Ukraine.
The bonds have since matured, but the cash remains at Euroclear due to EU sanctions against the Kremlin. The rating agency Fitch placed Euroclear Bank on a "rating watch negative," citing the increased risk of legal claims and liquidity issues. Euroclear stated that Fitch's decision highlights the need for greater clarity regarding the EU's borrowing plans.
Lawyers told Reuters that although Euroclear does not have assets in Russia that could be seized, following the expected court ruling in favor of the central bank of Russia, Moscow could attempt to enforce the decision in jurisdictions it considers "friendly."
What the plan entails
According to the complex plan, the EU will borrow from Euroclear to provide Ukraine with an initial loan of 90 billion euros, roughly two-thirds of Kyiv's financing needs for 2026 and 2027. The EU expects that Ukraine's other allies will cover the remainder.
Ukraine will repay the money to the EU only if and when Russia agrees to pay reparations for the vast damages caused by the war. Subsequently, the EU will repay Euroclear. Throughout the entire cycle, Russia remains the legal owner of the assets.
Euroclear, often described as a "bank for banks," was until recently unknown to the general public. It now manages assets worth 40.7 trillion euros for its clients, which include central banks, investment banks, and supranational organizations. The company has its roots in a Belgian branch of the JP Morgan bank on Wall Street. It does not hold cash but facilitates the electronic exchange of money and securities like stocks and bonds.
Why now?
EU leaders agreed in 2024 to use the interest from frozen Russian state assets for Ukraine. However, the direct use of the capital remains far more controversial. Decision-makers in Brussels, Paris, and Berlin were concerned that it would damage investor confidence in the eurozone.
The situation changed in October, when the Chancellor of Germany, Friedrich Merz, spoke decisively in favor of using the assets without formal seizure. Germany shares concerns about eurozone stability but considers Russia's imperial ambitions to be the greater economic threat.
Parallel to this, Donald Trump has halted new military aid to Ukraine. European countries, facing stagnant economies and pressure on public spending, are not filling the gap adequately, according to the Kiel Institute in Germany.
Ukraine is rapidly running out of money: Kyiv needs an estimated 136 billion euros for 2026 and 2027 to fund its defense and maintain state operations, according to the European Commission. Without new funds by spring, Ukraine risks bankruptcy, unable to pay soldiers, teachers, and police officers. Trump's proposals for American companies to benefit from Russian assets also pushed European leaders to secure them for Ukraine.
What does Russia say?
Vladimir Putin has stated that using frozen assets to fund a loan would amount to "theft of foreign property." The Russian President and his advisors have issued stern warnings about the consequences for European economic stability and investor trust in the eurozone.
The Central Bank of Russia has initiated a claim of 230 billion euros against Euroclear, which already faces over 100 legal cases in Russia. Putin has signed a series of decrees, the most recent in October, making it easier for the Kremlin to seize Western private and state assets in Russia in retaliation for any asset seizure.
Why is Belgium reacting?
Belgium, which hosts the majority of the assets, describes the EU plan as "fundamentally flawed." The Belgian government argues that the move will be seen as a seizure and that without strong guarantees from the EU, it could face multi-billion dollar claims if Moscow wins lawsuits against Euroclear and seizes Belgian property in Russia.
Although European courts will not recognize a Russian decision, jurisdictions friendly to Moscow, such as Kazakhstan or China, could seek to execute any claim against Belgium by seizing assets in their countries. Belgium has stated it will not accept the plan without all its concerns being met, including absolute guarantees from other EU countries covering 100% of potential claims.
Is there an alternative?
Theoretically, a "Plan B" exists. EU member states could use uncommitted funds from the EU budget as a guarantee for a loan to Ukraine – a method tested and recently proposed by the European Commission.
Belgium, supported by Italy, Bulgaria, and Malta, argues that this is a legally safer way to help Kyiv, leaving the Russian billions intact for Ukraine's eventual reconstruction. Other officials argue that the plan involving the frozen assets is the only real option, as a loan guaranteed by the EU budget requires unanimity, while the Hungarian government has already stated it would exercise a veto.
What happens if there is no agreement?
If the summit, scheduled for Thursday and Friday, concludes without a clear financing plan for Ukraine, the EU's credibility will be severely damaged. Europe will find it even harder to influence peace talks under the presidential realism of the US, which already considers the continent's leaders to be weak.
Friedrich Merz warned that a failure to agree on the frozen funds will damage the EU's ability to act for many years and will show the world an inability to take coordinated action at critical moments.
And if there is an agreement?
An agreement will bring relief, but the problems do not end there. Even if EU leaders approve the use of frozen assets, it must be turned into law to cover Ukraine's urgent military and civil needs by spring.
Decisions on the massive cost of Ukraine's reconstruction – estimated at 524 billion dollars or 506 billion euros according to the latest estimates – remain unclear. Any peace agreement will also have to resolve border and security issues, while Russia shows no intention of ending the war.
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