🔗 Share this article Russia Seeks Staggering Amount in Compensation against Euroclear Regarding Frozen Assets Russia's monetary authority has stated it is seeking compensation valued at $230 billion from the securities depository Euroclear. This move represents a direct warning by the Kremlin regarding plans to use frozen Russian sovereign funds to aid Ukraine. The Substantial Demand Based on accounts in local news outlets, the monetary authority initiated a lawsuit last week for an estimated 18 trillion roubles. This sum is equivalent to the stated $230 billion demand. European Union officials will determine in the coming days regarding a proposal to use approximately €210 billion in immobilized Russian assets. This scheme involves providing Ukraine with a large loan to fund its military and economic stability. The vast majority of these funds, totaling €185 billion, reside at the Euroclear depository in Brussels. This institution serves as the main keeper for the Russian immobilised sovereign wealth. Dispute on Ownership European Union authorities have maintained that their proposal is legally sound. They argue is based on the principle that title of the state assets still belongs to Russia, even though it was immobilized in European countries shortly after the full-scale military offensive of Ukraine. The Russian government, in contrast, has called any utilization of the funds as illegal appropriation. Authorities have threatened retaliatory measures, including seizing European corporate assets within Russia. The head of Russia's sovereign wealth fund, who has assumed a prominent position in peace negotiations, stated on X that Russia "will prevail in court" and retrieve its assets. He added that the EU, the euro, and Euroclear "will suffer" from the plan. Wider Implications In comments seen as an attempt to create division between Europe and the United States, Dmitriev characterized the proposal as "a vicious attack on the right to ownership and the international reserves system created by the United States." The clearing house refused to provide a statement on the latest legal action. The institution has previously stated it is facing more than 100 lawsuits in Russian courts. Legal Hurdles Ahead While courts in EU countries are unlikely to recognize rulings from Russian courts, experts expect Moscow to seek enforcement in countries with stronger relations to the Kremlin. "Russian monetary authorities may attempt to enforce a Russian legal ruling against Euroclear in jurisdictions like China, Hong Kong, the UAE, Kazakhstan, and other friendly nations, if relevant holdings can be located," commented a legal expert from an international firm. European Safeguards European authorities indicated they are working on measures to deter other nations from assisting any Russian lawsuits against EU companies. They are also crafting protections to protect EU member states with assets in Russia from what they call "unlawful expropriation." The Proposed Loan Mechanism According to the complex scheme, the EU would provide an first €90 billion loan to Ukraine, backed by the cash earned from the frozen assets at Euroclear. Importantly, Russia's legal claim on the underlying funds would remain unaffected. Kyiv would only be obligated to return the loan in the event that Russia agreed to pay compensation for the immense destruction caused during the nearly four-year conflict. Alternative Proposals Belgium, supported by Italy, Bulgaria, and Malta, has asked the EU to consider an different approach for financing Ukraine. This entails common EU borrowing to secure a loan, using unused funds within the EU budget. This alternative move, however, requires unanimity among all 27 EU countries. Hungary's government, considered aligned with the Kremlin, has already signaled its objection. Speaking on Monday, the EU foreign policy chief, Kaja Kallas, described the proposed loan scheme as "the most credible option" for aiding Ukraine. "This mechanism is based on the Russian frozen assets, which means it is not drawn from our taxpayers' money, which is also important," she stated. "Furthermore, it sends a clear message that if you cause all this destruction to another nation, you have to pay for the rebuilding."