Russia's central bank to approach court amid EU plans to confiscate frozen assets

Moscow, Dec 12 (PTI) Russia's central bank on Friday described the European Union’s decision to freeze its assets as “illegal actions” and threatened to file lawsuits to recover damages.

The Bank of Russia intends to recover damages caused to the Russian regulator from the Belgian depository Euroclear and will file a corresponding lawsuit in the Moscow Arbitration Court, a statement from the bank said.

The central bank made this decision “in connection with the illegal actions of the Euroclear depository,” as well as due to the mechanisms officially being considered by the European Commission for the direct or indirect use of the Bank of Russia's assets without its consent, it said. Earlier, the European Union (EU) declared to keep the Russian bank's assets frozen “for foreseeable future” using an emergency clause, according to reports.

As the EU summit next week is scheduled to discuss indefinitely freezing Russian sovereign assets to finance Ukraine’s budget, including purchase of arms to regain lost territories, Moscow has cautioned that it will reciprocate.

Brussels-based Euroclear is believed to be holding about Euro 193 billion Russian assets. The Belgian government, which hosts this financial institute, has spoken against confiscation of these assets to finance Ukraine as no other EU government is willing to share liability for the step if Moscow goes to court.

“The actions of the Euroclear depository caused harm to the Bank of Russia due to the inability to manage funds and securities belonging to the Bank of Russia,” the central bank underscored.

The Bank of Russia said implementation of such plans would be challenged in “national courts, judicial authorities of foreign states and international organisations, arbitral tribunals and other international judicial instances, followed by the enforcement of judicial decisions in the territories of UN member states.” Speaking in the Upper House -- the Council of Federation -- on Wednesday, Russian Foreign Minister Sergei Lavrov said the Kremlin has prepared its tough response to expropriation of Russian assets, including confiscation of Western government and private assets.

Local media reports suggest Russia has approximately USD 500-800 billion worth such assets. PTI VS NPK ZH NPK NPK