A Moscow court will conduct a preliminary hearing on January 16, 2026, for the lawsuit filed by the Russian central bank against the Belgian securities depository Euroclear, according to the court’s press service. The case marks a significant escalation in Russia’s legal efforts to reclaim its frozen assets held in Europe.

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Central Bank Seeks $230 Billion in Damages

This week, the Russian central bank filed a lawsuit in Moscow seeking $230 billion in damages from Euroclear. The Kremlin has warned that the case could become a “legal nightmare” for the European Union, in response to EU plans to utilize frozen Russian central bank assets to fund Ukraine’s defense and budget requirements in 2026 and 2027.

The EU has indicated that it may deploy up to €165 billion ($193.8 billion) of Russian assets currently frozen in European banks, heightening tensions between Moscow and Brussels.

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Background: Euroclear and Russian Assets

Euroclear, the Belgium-based central securities depository, has been holding bonds for the Russian central bank since before Russia’s 2022 invasion of Ukraine. While the bonds themselves have matured, the funds remain in Euroclear accounts due to EU sanctions against Russia.

The dispute has already affected Euroclear’s financial standing. Fitch Ratings placed Euroclear Bank on “rating watch negative”, citing potential legal and liquidity risks stemming from the lawsuit and the uncertainty surrounding the EU’s plans for the frozen assets. Euroclear responded by emphasizing the need for clarity on EU proposals to repurpose Russian funds for Ukraine’s financial needs.

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Legal Implications and Potential Enforcement

Legal experts note that Euroclear does not hold assets within Russia that could be seized. However, if the Moscow court rules in favor of the Russian central bank—as widely expected—Russia may attempt to enforce the judgment in jurisdictions it considers favorable, potentially triggering broader international legal disputes.

This case highlights the growing legal and financial complexity surrounding frozen state assets and sanctions, raising questions about cross-border asset protection and the potential for retaliatory measures between Russia and the EU.

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Broader Geopolitical and Financial Context

The lawsuit comes amid a backdrop of heightened geopolitical tension and ongoing scrutiny of frozen Russian assets in Europe. Analysts suggest that the outcome could influence:

• Future handling of sanctioned state assets in the EU,
• The liquidity and risk profile of major depositories like Euroclear, and
• Legal precedents for cross-border enforcement of sovereign claims.

As Europe seeks funding to support Ukraine, the Moscow court’s January hearing is likely to draw international attention, with potential ramifications for both European financial institutions and the broader global sanctions regime.