Russian central bank challenges indefinite asset freeze before EU court
Russia's central bank has lodged a case with the General Court of the European Union, challenging the EU's decision to freeze Russian state assets indefinitely. Most of these assets are held by Belgium-based financial services company Euroclear.
In a statement, the bank said it was contesting EU emergency legislation adopted on 12 December, under which member states blocked around 210 billion euros in Russian state assets for an indefinite period. The funds had already been immobilised as part of sanctions imposed following Russia's invasion of Ukraine.
The new measure was designed to prevent the possible unfreezing of the assets if a member state were to veto the six-monthly renewal of sanctions. It also created the option of using the funds to pay reparations to Ukraine. However, a week later at a European summit, leaders opted for a joint loan to Kyiv instead of directly tapping the frozen assets, after opposition from Belgium.
In its action before the court, the Russian central bank argues that the regulation breaches the right to effective judicial protection, the right to property and the principle of sovereign immunity of states and their central banks. It also claims the Council committed "serious procedural errors" by adopting the emergency legislation by qualified majority rather than unanimously.
Full confidence in legality
A spokesperson for the European Commission said on Tuesday that the institution had taken note of the complaint. "This comes in the context of a growing number of legal proceedings by Russia against our support for Ukraine, so we are not surprised," the spokesperson said. "We have full confidence in the legality of this regulation and its compatibility with EU and international law."
The EU has said the assets will remain frozen until Russia has paid reparations to Ukraine. The Moscow-based central bank has also initiated legal proceedings against Euroclear, seeking the equivalent of 200 billion euros from the Belgian firm.
The headquarters of the Euroclear Group financial institute in Brussels. © BELGA PHOTO NICOLAS MAETERLINCK
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