🔗 Share this article Moscow Demands Staggering Amount in Compensation from Clearing House over Seized Assets Russia's monetary authority has declared it is pursuing compensation amounting to $230 billion from the securities depository Euroclear. This move is a clear warning by the Kremlin regarding proposals to utilize immobilized Russian sovereign funds to support Ukraine. The Financial Lawsuit Based on accounts in local state media, the central bank filed a lawsuit last week for roughly 18 trillion roubles. This figure is equivalent to the stated $230 billion demand. European Union officials are set to determine in the coming days regarding a plan to leverage around €210 billion in immobilized Russian state funds. The proposal entails providing Ukraine with a large loan to fund its defence and economic needs. Most of these assets, totaling €185 billion, reside at the Euroclear clearing house in Brussels. Euroclear acts as the main custodian for the Kremlin's immobilised financial reserves. A Clash Over Legality European Union authorities have maintained that their plan is on solid legal ground. They argue is based on the principle that title of the sovereign wealth still belongs to Russia, even though it was immobilized in EU countries shortly after the full-scale invasion of Ukraine. The Russian government, in contrast, has called any utilization of the funds as theft. It has warned of retaliatory measures, such as seizing European private investors' assets within Russia. Kirill Dmitriev, a figure who has taken on a prominent role in peace negotiations, wrote on X that Russia "will win in court" and regain its assets. He warned that the EU, the common currency, and Euroclear "will suffer" from the proposal. Geopolitical Maneuvering With statements interpreted as an attempt to create division between Europe and the United States, the official described the proposal as "a vicious assault on the right to ownership and the international reserves system established by the United States." The clearing house refused to comment on the latest lawsuit. It has in the past noted it is facing more than 100 legal cases in Russian courts. Enforcement Challenges Although courts in European nations are not expected to recognize judgments from Russian tribunals, analysts expect Moscow to seek implementation in countries with closer relations to the Kremlin. "The Bank of Russia may attempt to implement a Russian legal ruling against Euroclear in countries such as China, Hong Kong, the UAE, Kazakhstan, and other sympathetic states, if relevant holdings can be identified," commented a legal expert from an NSP law firm. European Safeguards European authorities indicated they are working on steps to discourage other countries from aiding any Russian legal action against European entities. Additionally, they are designing safeguards to protect EU member states with investments in Russia from what they call "unlawful expropriation." The Proposed Loan Mechanism Under the complex plan, the EU would provide an first €90 billion loan to Ukraine, using the proceeds generated from the immobilized assets at Euroclear. Importantly, Russia's legal claim on the principal funds would stay untouched. Kyiv would only be obligated to return the loan in the event that Russia consented to pay compensation for the immense damage inflicted during the ongoing war. Other Funding Ideas The Belgian government, supported 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, backed by unallocated funds within the European budget. Such a proposal, however, demands unanimity among all 27 member states. The Hungarian government, considered friendly with the Kremlin, has already signaled its opposition. Commenting on Monday, the EU top diplomat, a senior official, described the proposed loan scheme as "the most credible option" for supporting Ukraine. "The reparations loan is secured against the Russian immobilized funds, meaning it doesn't come from our public funds, which is also important," she remarked. "It also sends a clear message that if you do all this destruction to another country, you must pay for the rebuilding."