Russia’s Central Bank says it has filed a lawsuit in Moscow’s Arbitration Court against Euroclear, the Brussels-based clearing house that holds a large share of Russia’s immobilized assets in Europe. The bank said it is seeking compensation for damages linked to restrictions that prevent it from managing or disposing of assets held through Euroclear. Euroclear declined to comment, and it was not immediately clear what practical effect a Russian court ruling would have on an institution based in Belgium.
In a separate statement, the central bank also criticized wider EU discussions about using Russian assets to help fund Ukraine, calling the idea “illegal” and arguing it violates principles of sovereign immunity. It was the first time the bank publicly commented on the EU’s plans.
How Much Money Is Frozen and Where It Sits
The dispute stems from the EU’s decision to freeze Russian state assets held in the bloc shortly after Russia launched its full-scale invasion of Ukraine on Feb. 24, 2022. The European Commission estimates around €210 billion ($247 billion) in frozen Russian assets are held in Europe. By late September, Euroclear held about €193 billion ($225 billion), concentrating both the financial and legal risk in Belgium.
The sanctions are not permanent unless the EU keeps renewing them. The asset freeze is part of a sanctions regime that must be extended every six months, and renewal requires unanimous approval from the bloc’s 27 member states.
The EU’s Loan Concept Backed by Frozen Assets
At a summit scheduled for Dec. 18, 2025, EU leaders are expected to revisit whether to use tens of billions of euros linked to the frozen assets as collateral for a major loan for Kyiv.
Earlier this month, European Commission President Ursula von der Leyen said the EU intends to cover about two-thirds of Ukraine’s financing needs for 2026 and 2027, which the International Monetary Fund has put at €137 billion ($160 billion). Von der Leyen said the EU would provide €90 billion ($105 billion), while other partners would be asked to cover the remaining third. She referred to the approach as a “reparations loan,” saying it would support Ukraine now while keeping pressure on Moscow to pay for war damage.
Under the outline described publicly, the assets themselves would remain frozen rather than being seized at the outset. The loan would be repaid if and when Russia pays significant reparations; if it does not, the assets would stay immobilized. EU officials also pointed to the scale of earlier support, saying the bloc has provided more than €170 billion ($197 billion) since the war began.
Belgium’s Objections and Eurozone Concerns
Belgium has been among the most outspoken skeptics of using the assets as collateral. Foreign Minister Maxime Prévot said the collateralized-loan option is risky and urged borrowing on international markets instead, arguing that Belgium should not be left facing the “economic, financial and legal risks” on its own. He also warned that Euroclear could face litigation if Russia challenges any use of the assets or if the move harms its reputation and business interests. Belgian officials have said they want other EU countries to share any fallout if disputes escalate.
EU officials have argued that safeguards can limit exposure. On Dec. 12, 2025, European Economic Commissioner Valdis Dombrovskis said EU financial institutions holding the immobilized assets are protected under the sanctions framework and that central securities depositories such as Euroclear can offset any seizure of their assets in Russia with frozen Russian assets held in Belgium.
Another concern is the message the policy could send to global markets. The European Central Bank has warned that if Europe appears willing to seize or redirect other countries’ sovereign reserves, it could undermine confidence in the euro. Belgian Prime Minister Bart De Wever has cited fears of retaliation against Belgium’s interests as a reason he has refused to approve the plan.
