MOSCOW, Dec 17 (Reuters) – A Moscow court will hold a preliminary hearing on January 16 on the Russian central bank’s lawsuit against Belgian depository Euroclear, the court’s press service said on Wednesday.
The central bank has filed a lawsuit in Moscow this week seeking $230 billion in damages from Euroclear, marking the first step in what the Kremlin has warned will be a legal nightmare for the EU over plans to use frozen Russian assets to support Ukraine.
The EU, searching for a way to finance Ukraine’s defence and budget needs in 2026 and 2027, plans to use up to 165 billion euros ($193.84 billion) of Russian central bank assets frozen in Europe.
Euroclear, the Belgian Central Securities Depository, was holding bonds for the Russian central bank at the onset of Russia’s invasion of Ukraine. The bonds have since matured, but the cash remains in Euroclear because of EU sanctions against the Kremlin.
Ratings agency Fitch placed Euroclear Bank on “rating watch negative”, citing the potential for increased legal and liquidity risks. Euroclear said that Fitch’s decision signalled a need for greater clarity on the EU loan plans.
Lawyers told Reuters that although Euroclear does not have assets in Russia that could be seized, following the court’s widely expected decision in favour of the central bank’s claim, Russia could seek to enforce it in jurisdictions it considers ‘friendly.’
(Reporting by Elena Fabrichnaya; Writing by Gleb Bryanski; editing by Guy Faulconbridge)
Comments