The decision is a significant step towards using the cash to aid Ukraine’s defence – but Moscow is threatening to retaliate
The decision is a significant step towards using the cash to aid Ukraine’s defence – but Moscow is threatening to retaliate
The EU has agreed to indefinitely freeze Russia’s sovereign assets in the bloc, as Moscow stepped up its threats to retaliate against Euroclear, the keeper of most of the Kremlin’s immobilised money.
The decision by the EU to use emergency powers to immobilise €210bn (£185bn) of its central bank’s assets marks a significant step towards using the cash to aid Ukraine’s defence against Russia.
European Council president António Costa confirmed on Friday that EU leaders had delivered on a commitment, made in October, to “keep Russian assets immobilised until Russia ends its war of aggression against Ukraine and compensates for the damage caused”.
Before this step, EU sanctions underpinning the frozen assets needed to be renewed every six months – creating potential for a Kremlin-friendly government, such as Hungary, to veto the move.
The decision came hours after Russia’s central bank said it was filing a lawsuit against Euroclear, the Brussels central securities depository that holds these assets. The organisation, once a little-known part of international financial plumbing that is now in the spotlight, has no say on how the frozen funds are used.
The lawsuit, being filed in a Moscow court, claims Euroclear’s “illegal actions” had caused “damage” to the central bank’s ability to manage funds and securities.
Euroclear declined to comment, but a spokesperson said it was “currently fighting more than 100 legal claims in Russia”.
