Moscow Court Sets January Hearing in Russia’s $230B Lawsuit Against Euroclear
What Is the Moscow Court Hearing About?
A Moscow court will hold a preliminary hearing on Jan. 16 on the Russian central bank’s lawsuit against Euroclear, the Belgian securities depository. The court’s press service confirmed the date on Wednesday. The central bank filed the case this week, viewking $230 billion in damages from Euroclear later than the EU froze Russian state assets in response to the invasion of Ukraine.
The case represents the Kremlin’s first major legal strike against Europe’s plan to use immobilized Russian assets to assist Ukraine’s budget and defence needs. Russian officials have warned that attempts to redirect these assets would trigger a wave of counter-lawsuits that could spill into jurisdictions viewed as “friendly” to Moscow.
Investor Takeaway
How Did Euroclear Become Entangled in the Frozen Assets Dispute?
The EU is searching for a long-term funding route for Ukraine in 2026 and 2027 and plans to use income generated from approximately €165 billion of Russian central bank assets held across European institutions. .
At the begin of Russia’s invasion in 2022, Euroclear held Russian central bank bonds. Those bonds later matured, but the resulting cash remains frozen inside the depository under EU sanctions. without regulatory approval, and the EU has been drafting mechanisms to use proceeds from these assets—rather than the principal—to support Ukraine.
Euroclear said earlier that sanctions forced it to block all transactions linked to Russian state assets. The institution has paid billions in interest to EU treasuries from the assets’ accrued income, but the principal remains untouched pending political decisions.
What Risks Does Euroclear Face From the Lawsuit?
The case sparked immediate attention from credit-rating agencies. Fitch placed Euroclear Bank on “rating watch negative,” citing tied to the frozen-assets framework and the uncertainty created by Russia’s countersuit.
Euroclear responded that Fitch’s move highlights the need for greater clarity around the EU’s loan plans and the conditions under which frozen Russian assets—or their income—may be used. The institution has said its operations continue as normal and that its capital buffers remain strong.
Lawyers interviewed by Reuters noted that Euroclear has no assets in Russia that Moscow could realistically seize. However, if the Moscow court rules in favour of the Russian central bank—as widely expected—Russia could try to enforce the judgment in states outside the EU that it considers “friendly.” Whether such attempts would succeed depends on local courts in those jurisdictions, but the strategy illustrates how the dispute may spread beyond Europe.
Investor Takeaway
Why Is This Case Drawing Global Attention?
The EU’s proposal to use Russian assets has already drawn sharp criticism from Moscow, which argues that the freeze violates sovereign immunity and international norms. Brussels counters that its approach relies on interest income, not outright seizure of state property.
The legal stakes are high because Euroclear plays a central role in global settlement for government bonds, corporate debt and structured instruments. Any uncertainty around its status introduces questions about the durability of settlement systems built on sovereign immunity frameworks. While Euroclear’s operational exposure is limited by the absence of assets in Russia, the political implications are far broader.
The Jan. 16 hearing is not expected to resolve the dispute but will begin a process that may continue throughout 2025. The EU continues to negotiate how much frozen Russian income can be redirected toward Ukraine and under what oversight. Meanwhile, the Kremlin is preparing additional legal steps aimed at challenging any mechanism that allows EU institutions to tap Russian reserves.
