Russia sues euroclear in Moscow for $229 billion over frozen assets

The Bank of Russia has filed a lawsuit in Moscow seeking 18.2 trillion rubles ($229 billion) from Belgium-based depository Euroclear, the state-run Tass news agency reported Monday.

In a statement on Friday, the Russian central bank accused Euroclear of “unlawful actions” that prevent it from accessing and managing its funds and securities. The lawsuit, filed at the Moscow Arbitration Court, covers the total value of Russia’s frozen assets in Europe, as well as additional income lost from them. The bank has requested that the case be heard in closed court.

The move marks the beginning of a potentially prolonged legal battle following the European Union’s approval to extend the freeze on up to €210 billion ($246 billion) of Russian state assets. EU governments recently backed a European Commission proposal intended to prevent vetoes of the extension, a key step in securing a €90 billion loan for Kyiv using the frozen Russian funds.

The Bank of Russia emphasized that it will challenge any unauthorized use of the assets through all available legal channels, including national courts, foreign judicial bodies, and international organizations. It will also seek enforcement of any favorable court decisions abroad.

Euroclear also holds approximately €16 billion in client assets in Russia, which could be at risk if Russian funds are withdrawn from the depository. These assets are stored in so-called C accounts, designated for investors from “unfriendly” countries under an order signed by President Vladimir Putin after the 2022 invasion of Ukraine. Some Russian courts have already ruled in favor of local investors seeking to recover income from frozen securities.

This lawsuit reflects a growing trend of Russian entities pursuing claims in domestic courts against foreign companies, with the aim of enforcing judgments internationally.