Euroclear Sues in Brussels to Block Moscow Court Ruling on $232 Billion in Russian Assets

Euroclear Introduces Lawsuit Against the Central Bank of Russia in $231.5 Billion Showdown

The issue of nearly $232 billion in Russian assets blocked in Europe is becoming more relevant as the two parties involved prepare for an upcoming legal battle that might determine the future of some, if not all, of these funds.

Euroclear, one of the largest clearinghouses in Europe, has decided to counter the action of the Central Bank of Russia, and has recently introduced a lawsuit in Brussels to render the recent decision of the Russian arbitration court void, which ordered it to unblock and pay the total of the blocked assets to the Russian Federation.

At that time, the Central Bank of Russia claimed that Euroclear’s actions were illegal and hindered the bank’s ability to access its funds and securities held in the depository’s custody.

French journal L’Echo had direct contact with Euroclear’s attorneys, Dorothée Vermeiren and Nathan Tulkens, who confirmed that the institution was seeking a swift decision in Brussels to undermine the Moscow court’s ruling.

“A trial cannot be held in Russia in violation of my client’s rights. We now consider this trial in Russia to be a travesty of justice,” Euroclear’s attorney stressed.

Since it was announced, Euroclear has contested the Russian court ruling, hinting at legal actions in response. “This is the latest in a series of legal actions brought against Euroclear in Russia. These actions are not recognized under European Union law, and Euroclear does not recognize the jurisdiction of this court,” it stressed.

The real issue lies in the international repercussions of these decisions in international jurisdictions outside Europe, where Euroclear also operates. The Russian court ruling could put assets under management at risk of seizure if these jurisdictions decide to execute the Russian decision.

Central Bank of Russia President Elvira Nabiullina referred to the upcoming legal battle, revealing that the bank was ready to use all its tools to defend its position.

“I want to say we do not disclose the tactics of our action in this regard. The only thing I can acknowledge is that we are ready use all the opportunities, all the mechanisms, and all the rights to stand out for our legitimate interests,” she declared.

Jim Rickards, best-selling author and economist, had warned about the effects of a general seizure of these assets, explaining that Euroclear’s offices in Hong Kong could be targeted, blocking the company’s operations and throwing a “monkey wrench” into the global clearance system.