Russia's Central Bank Responds to EU Plans for Frozen Assets

On December 12, 2025, the Central Bank of Russia issued a statement asserting that the European Union's plans to utilize frozen Russian assets are illegal. The bank emphasized its intention to protect its interests through all available legal means, including a lawsuit against Euroclear, a Brussels-based financial institution that holds many of these assets. The bank's position is that any unauthorized use of its assets contravenes international law and the principles of sovereign immunity.

ReutersRussia Claims Use of Its Frozen Assets by EU Is IllegalReuters

The European Commission recently proposed solutions to support Ukraine's financing needs for 2026 and 2027. One of these solutions involves borrowing cash balances from EU financial institutions that hold frozen Russian central bank assets to issue a reparations loan for Ukraine. This proposal has prompted a strong reaction from Russian officials, who have warned that such actions would elicit a severe response.

Reuters

The Central Bank of Russia stated, "Mechanisms of direct or indirect use of the assets of the Bank of Russia... are illegal and contrary to international law." It further indicated that it would challenge the EU's plans in various judicial forums, including national courts and international organizations. The bank's governor reiterated that the implementation of these plans would be met with "the harshest reaction."

Reuters

While the EU has not publicly responded to the Central Bank of Russia's statements, EU diplomats indicated a desire to agree on a framework that would allow for the prolonged freezing of Russian central bank assets without the need for biannual votes. This move is seen as a necessary step to support Ukraine amid ongoing geopolitical tensions.

Reuters

There is a lack of detailed information regarding the specific legal arguments that the Central Bank of Russia plans to employ in its lawsuit against Euroclear. Additionally, the responses from Euroclear, the Belgian government, and the European Commission have not been disclosed, leaving gaps in understanding the broader implications of this legal dispute.

Reuters

The Central Bank of Russia's legal actions against Euroclear and its broader challenge to the EU's asset utilization plans are expected to unfold in the coming months. The outcomes of these proceedings could have significant implications for international financial relations and the ongoing conflict in Ukraine.

Reuters

• “Mechanisms of direct or indirect use of the assets of the Bank of Russia, as well as any other forms of unauthorized use of the assets of the Bank of Russia, are illegal and contrary to international law, including violating the principles of sovereign immunity of assets,” — Central Bank of Russia

Reuters

• “The institution stated that it would employ all available measures to safeguard its interests.” — Central Bank of Russia

Russia Claims Use of Its Frozen Assets by EU Is Illegal