Bank of Russia Challenges EU Asset Freeze in Luxembourg Court

The Bank of Russia has initiated a lawsuit against the European Union, contesting the indefinite immobilization of approximately €210 billion in sovereign assets. This legal action, filed with the EU's General Court in Luxembourg on February 27, 2026, marks a significant confrontation between Moscow and European authorities following the EU's adoption of Council Regulation (EU) 2025/2600 on December 12, 2025. The regulation was implemented as part of the EU's strategy to leverage financial pressure on Russia amid its ongoing invasion of Ukraine, which began on February 24, 2022.

Russia’s central bank sues EU in Luxembourg over asset freeze

The Bank of Russia argues that the EU's regulation unlawfully locks up its assets and deprives it of effective legal remedies. The central bank claims that the regulation violates fundamental rights, including access to justice and the inviolability of property, which are protected under international treaties and EU law. Specifically, the Bank of Russia contends that the regulation prohibits any transfer of its assets for an indefinite period and blocks judicial protection for rights it asserts have been infringed.

Russia’s central bank sues EU in Luxembourg over asset freeze

A key aspect of the lawsuit centers on procedural issues. The Bank of Russia alleges that the EU adopted the regulation through a qualified majority vote rather than the required unanimity, which it claims is necessary for foreign policy decisions under Article 215 of the Treaty on the Functioning of the European Union. This procedural argument is critical, as it questions the legitimacy of the EU's actions in immobilizing Russian assets.

Russia’s central bank sues EU in Luxembourg over asset freeze

The EU's regulation is framed as a response to the serious economic difficulties caused by Russia's actions, aiming to prevent the movement of immobilized assets back to Russia and to mitigate economic risks within the Union. European Commission President Ursula von der Leyen has emphasized that the policy serves as a strong message to Russia, reinforcing that the costs of the war will continue to rise as long as hostilities persist.

Euronews

Critics of the EU's approach, including Hungary, have voiced concerns about the procedural integrity of the asset freeze. The Bank of Russia's lawsuit reflects a broader contention regarding the EU's ability to maintain unity and enforce sanctions amidst political divisions among member states.

Russia’s central bank sues EU in Luxembourg over asset freeze

As the legal proceedings unfold in Luxembourg, the outcome may have significant ramifications for both the EU's sanctions regime and Russia's financial strategies. The Bank of Russia has indicated that it will reserve all rights and claims related to the regulation and any associated EU measures, suggesting that this legal battle is just one front in a larger conflict over economic sovereignty and international law.

Russia’s central bank sues EU in Luxembourg over asset freeze

• “The bank alleges that the long-term immobilisation "violates the basic and inalienable rights to access justice, inviolability of property, and the principle of sovereign immunity of States and their central banks, guaranteed by international treaties and European Union law, which contradicts the fundamentals of the rule of law and cannot be regarded as compatible with the principle of supremacy of law", the statement said.” — Bank of Russia Statement

Euronews

• “We are sending a strong signal to Russia that as long as this brutal war of aggression continues, Russia's costs will continue to rise,” — Ursula von der Leyen, President of the European Commission

Euronews

• “ The Russian Central Bank claims Brussels "committed serious procedural violations" by using a qualified majority under Article 122 rather than the unanimity that governs foreign policy.” — Bank of Russia Statement

Euronews