Russian Central Bank Challenges EU Over $300 Billion in Frozen Assets
Legal Dispute Over Frozen Russian Sovereign Assets
Background of the EU Regulation
MOSCOW, May 25 (Reuters) - The Russian central bank said on Monday it had filed a second claim with the General Court of the European Union, challenging the EU regulation that allows the use of Russia's frozen sovereign assets to repay the EU's loan to Ukraine.
Central Bank's Argument
"The EU’s framework challenged by the Bank of Russia treats its sovereign assets as an element of financial support for a third country, altering the legal and economic regime of sovereign assets," the central bank said.
Details of the Regulation
The regulation, dated February 24, 2026, said the EU's loan to Ukraine should be repaid only when Ukraine receives reparations from Russia for its invasion in 2022, while the EU should reserve the right to use Russia's frozen assets to repay Ukraine's debt.
Scale and Location of Frozen Assets
Estimates and Holdings
The Russian central bank estimates that about $300 billion of Russia's sovereign funds have been frozen by Western countries. Most of these assets are frozen in Europe and are held at the Belgian depository Euroclear.
Previous Legal Actions
Challenging the Asset Freeze
Last March, the central bank challenged a move in December 2025 to freeze its assets in Europe indefinitely, arguing that the freeze was introduced with "serious procedural violations." The claim was also filed with the EU's General Court.
Moscow Court Ruling
Euroclear Damages
On May 15, a court in Moscow upheld the Russian central bank's claim to recover damages from Euroclear related to the freezing of assets worth 18.17 trillion roubles ($253.77 billion).
($1 = 71.6000 roubles)
(Reporting by Moscow bureau; Writing by Gleb Bryanski; Editing by Rod Nickel)
