Russia sues Euroclear as EU debates frozen assets for Ukraine

As EU leaders gather in Brussels for a summit focused on Ukraine, Russia has formally launched legal action against Euroclear over the freezing of its assets.

On Thursday, the Central Bank of Russia said it would file a claim with the Moscow Arbitration Court against Belgium-based Euroclear, accusing the clearing house of illegally freezing and using Russian assets. The claim seeks compensation equivalent to the value of the assets, as well as profits lost due to their unlawful retention and use.

The central bank said the total amount of compensation sought exceeds 18 trillion rubles ($225.2 billion), with a preliminary court hearing scheduled for January 16, 2026.

EU weighs using frozen Russian assets

The lawsuit comes as the European Union holds a two-day summit in Brussels from December 18 to 19, where one of the key agenda items is whether and how to use frozen Russian assets to support Ukraine. Ukrainian President Volodymyr Zelenskyy has arrived in Brussels, urging EU leaders to reach consensus on mobilizing the funds.

EU High Representative for Foreign Affairs and Security Policy Kaja Kallas said on December 15 that several financing options are under discussion, describing a so-called "reparation loan" as the most credible. Under the proposal, the EU would provide loans to Ukraine backed by frozen Russian assets.

Earlier, the European Council said the EU had decided to freeze Russian assets indefinitely. Zelenskyy said Ukraine expects to make full use of the 210 billion euros ($246 billion) in Russian assets frozen within the EU over the coming years to address urgent fiscal needs.

Since the escalation of the Russia-Ukraine conflict in February 2022, Western countries have frozen about $300 billion in Russian overseas assets. Of that amount, roughly 210 billion euros belonging to the Russian central bank is held in the EU, with around 90 percent managed by Brussels-based Euroclear.

Under current EU discussions, frozen Russian assets would be used as collateral for bonds issued by the bloc, with the proceeds lent to Ukraine. The loans would be repaid after the conflict, using what the EU has described as potential Russian "war reparations."

Belgium argues EU guarantees 'insufficient'

Chen Yu, deputy director of the Institute of Eurasian Studies at the China Institutes of Contemporary International Relations, said the EU's push is driven by three main factors: the need to keep Ukraine's government operating and finance military procurement; concerns that the United States and Russia could otherwise dominate decisions over the assets; and the EU's desire to demonstrate unity and capability to Washington to strengthen its position in future negotiations.

However, divisions remain within the EU. Hungary and Slovakia have consistently opposed using frozen Russian assets to support Ukraine. Belgium, where Euroclear is headquartered, has warned that confiscating the assets would amount to unilateral seizure, violate international law and expose the country to potential Russian retaliation.

Belgian Prime Minister Bart De Wever said on Thursday that EU guarantees for using frozen Russian assets remain "insufficient," stressing that Belgium would not bear the risks alone. Addressing parliament ahead of the summit, he warned that confiscation could trigger a snowball effect, undermining Euroclear's ability to meet client obligations and threatening its financial stability. He added that the proposal could damage Euroclear's reputation, weaken confidence in Europe's financial markets and breach international law.

EU leaders failed to reach agreement on the reparation loan plan at an October summit due to objections from Belgium and other member states.

A source close to the talks said on Thursday that German Chancellor Merz indicated during the Brussels summit that he intends to meet Belgium's concerns by using Russian central bank assets held in Germany to support Ukraine.

Possible Russian retaliatory measures

Russia's Foreign Ministry has repeatedly condemned the freezing of its central bank assets as theft, warning it will respond to any EU move to confiscate them.

In addition to legal action against Belgium and Euroclear, Chen said Russia could take retaliatory measures, including seizing EU corporate assets remaining in Russia, potentially worth tens of billions of euros, and restricting exports of key industrial materials such as nickel, aluminum and fertilizers.

As Europe continues to step up support for Ukraine, U.S. mediation efforts are also ongoing. A White House official told AFP that U.S. and Russian officials will meet in Miami this weekend for new talks on President Donald Trump's plan to end the conflict.

Zelenskyy said on Tuesday that a Ukrainian negotiating delegation will visit the United States later this week or early next week for further consultations on ending the conflict. He said Washington is expected to engage Moscow first and then brief the Ukrainian side on Russia's response.