Experts assessed the legal consequences of the Russian Federation's lawsuit due to the threat of asset confiscation

The decision of the Central Bank of Russia was the first official legal step in response to the threat of confiscation of Russian assets abroad. Igor Kim, a lawyer, a member of the expert council under the Commissioner for Human Rights, and a graduate student at the Department of Business and Corporate Law at the Kutafin Moscow State Law University, told Izvestia on December 12.

"If the EU officially confiscates assets, then trust in Western financial centers will collapse. I think the consequences will be very severe for Europe," the expert stressed.

Kim noted that the court decision creates legal grounds for retaliatory steps, including the possible confiscation of Western assets located in Russia. He also admitted that in the coming years, the Russian Federation will enter into a long phase of litigation with European structures involved in the blocking of funds.

Yulia Kuznetsova, an investment adviser in the registry of the Central Bank of the Russian Federation, explained in an interview with Izvestia that the filed lawsuit would not lead to the immediate unblocking of Russian assets, since they are outside Russian jurisdiction, and decisions of the Moscow Arbitration Court are not subject to automatic enforcement in the European Union (EU).

"However, the lawsuit is of fundamental importance: it legally records the fact of damage and forms Russia's legal position in the face of increasing pressure on sovereign assets," Kuznetsova said.

She noted that the proceedings with Euroclear are part of a long-term strategy to protect the country's financial interests and prepare for possible mirror measures. Kuznetsova also drew attention to the fact that if earlier the asset freeze regime was extended for a limited period, now attempts are being made to consolidate it for an indefinite period, which significantly increases the legal and reputational risks for the entire financial infrastructure of Europe.

Recover damages: The Central Bank files a lawsuit against Euroclear in the Moscow Arbitration Court

The illegal actions of the European depository will result in a loss of reputation for it.

On December 12, the Central Bank of the Russian Federation announced that it would file a claim for damages against Euroclear in the Moscow Arbitration Court. The Bank of Russia clarified that as a result of Euroclear's actions, the regulator lost the ability to dispose of its funds and securities. The Central Bank explained that the reason for going to court was both the actions of the depository itself and the mechanisms discussed in the European Commission (EC) for the direct or indirect use of the assets of the Bank of Russia without its consent.

Later, Euroclear announced its readiness to defend itself in Russian courts on claims due to the blocking of Russian assets. The EC and the Belgian government did not comment on the filed lawsuits.

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