Russian Central Bank Challenges EU Regulation in Euroclear Asset Dispute
Overview of the Legal Dispute and Regulatory Actions
Background of the Asset Freeze and EU Sanctions
MOSCOW, Sept 17 (Reuters) - Russia's central bank said on Thursday it had filed a challenge with the EU General Court against an EU regulation adopted in July that it said interfered with its dispute with Euroclear over the freezing of Russian assets in Europe.
The EU's 21st package of sanctions against Russia included permission for EU courts and member states not to recognise or enforce any court decision that was obtained in Russian courts.
Legal Proceedings Between Russia and Euroclear
Russian Court Actions and Damages Sought
The central bank filed a lawsuit in Moscow last year seeking 18.2 billion roubles ($215.33 million) in damages from Euroclear. A Moscow court upheld the ruling in May and rejected Euroclear's appeal in July.
Kremlin's Warning and EU's Response
The Kremlin warned it would be a legal nightmare for the EU if it went ahead with plans to use frozen Russian assets to support Ukraine.
Euroclear's Counteraction in Belgian Court
Euroclear sued Russia's central bank in a Belgian civil court in June, seeking to block the enforcement of a Russian ruling. The central bank said on Thursday that the EU measure was an interference in the ongoing legal proceedings in Belgium.
Implications and Potential Actions
Impact of EU Measures on Russian Central Bank
"The measures create disproportionate restrictions on the protection of the rights of the Bank of Russia outside the EU, including the application of financial sanctions for violating relevant court prohibitions," the central bank said.
Possible Seizure of Euroclear Assets in Other Jurisdictions
The central bank could seek the seizure of Euroclear assets in other jurisdictions, especially in countries that Russia deems friendly, such as China, the United Arab Emirates and Kazakhstan.
Exchange Rate Information
($1 = 84.5196 roubles)
Reporting Credits
(Reporting by Reuters, Writing by Alessandra Prentice and Gleb Bryanski; Editing by Alex Richardson)
