🔗 Share this article Russia Seeks Staggering Sum in Compensation against Clearing House Regarding Frozen Assets Russia's monetary authority has stated it is claiming damages totaling $230 billion from the securities depository Euroclear. This action is a direct response from the Kremlin against proposals to use immobilized Russian sovereign funds to support Ukraine. The Substantial Demand According to accounts in Russian state media, the monetary authority initiated a claim last week for approximately 18 trillion roubles. This amount is equivalent to the stated $230 billion claim. European Union officials are set to determine in the coming days regarding a plan to leverage around €210 billion in frozen Russian state funds. This scheme entails granting Ukraine with a large loan to fund its defence and economic needs. The vast majority of these funds, totaling €185 billion, are held at the Euroclear clearing house in Brussels. Euroclear serves as the main custodian for the Russian frozen financial reserves. A Clash Over Legality European Union officials have maintained that their plan is on solid legal ground. They argue rests on the principle that ownership of the state assets still belongs to Russia, despite being it was immobilized in EU jurisdictions shortly after the full-scale military offensive of Ukraine. Moscow, in contrast, has called any use of the funds as theft. It has warned of reciprocal actions, such as confiscating European private investors' holdings within Russia. Kirill Dmitriev, a figure who has taken on a prominent position in peace negotiations, wrote on a social media platform that Russia "will prevail in court" and retrieve its funds. He warned that the EU, the common currency, and Euroclear "will face consequences" from the plan. Geopolitical Maneuvering In comments seen as an attempt to create division between Europe and the United States, the official characterized the proposal as "a severe assault on the right to ownership and the international reserves system created by the United States." The clearing house declined to comment on the new lawsuit. The institution has previously noted it is contending with more than 100 legal cases in Russian jurisdictions. Legal Hurdles Ahead Although courts in EU countries are not expected to enforce judgments from Russian tribunals, analysts expect Moscow to pursue enforcement in countries with stronger ties to the Kremlin. "Russian monetary authorities may attempt to enforce a Russian legal ruling against Euroclear in countries such as China, Hong Kong, the UAE, Kazakhstan, and other friendly states, if such holdings can be located," commented a lawyer from an NSP law firm. EU Countermeasures European authorities said they are developing measures to discourage other nations from aiding any Russian legal action against EU companies. They are also designing safeguards to shield EU member states with assets in Russia from what they term "illegal expropriation." How the Funding Would Work Under the complex scheme, the EU would provide an initial €90 billion loan to Ukraine, using the proceeds earned from the frozen assets at Euroclear. Critically, Russia's legal claim on the principal funds would stay unaffected. Ukraine would only be required to repay the loan if and when Russia agreed to pay compensation for the immense destruction caused during the ongoing war. Other Funding Ideas Belgium, backed by Italy, Bulgaria, and Malta, has asked the EU to examine an alternative method for financing Ukraine. This involves common EU borrowing to fund a loan, using unused funds within the EU budget. This alternative move, however, requires full agreement among all 27 EU countries. The Hungarian government, considered aligned with the Kremlin, has previously signaled its objection. Speaking on Monday, the EU foreign policy chief, a senior official, described the proposed loan scheme as "the most credible solution" for aiding Ukraine. "The reparations loan is secured against the Russian immobilized funds, which means it doesn't come from our public funds, which is also significant," she stated. "Furthermore, it delivers a clear signal that when you do all this damage to another country, you have to pay for the rebuilding."