The Russian central bank has initiated proceedings at the General Court of the European Union in Luxembourg. Through this case, Moscow aims to contest a European measure that indefinitely freezes Russian state assets held in European accounts.
The complaint targets an EU decision from December of last year. This decision enabled Russian bank accounts in Europe to be blocked not just temporarily, but for an indefinite period.
No Need for Repeated Renewals
The choice to freeze the assets indefinitely had a practical reason. It was intended to prevent the measure from having to be renewed repeatedly and potentially being challenged.
Promotion
The frozen amount is estimated at approximately 210 billion euros. These are Russian state assets held in various financial accounts within the European Union.
A large portion of these assets is held at the banks' bank Euroclear. This financial institution, based in Belgium, globally safekeeps and manages securities and financial transactions for banks and governments.
The assets were originally frozen following the outbreak of the war between Russia and Ukraine in 2022. European sanctions at that time seized large amounts of Russian state funds held abroad.
In the lawsuit, the Russian central bank claims that the European measure violates several fundamental rights. These include the right to property, access to a court, and the protection of state assets.
Hungary Circumvented
It is also argued that the decision was made improperly according to Moscow. The complaint states that the measure was adopted by a qualified majority (of EU countries), while Russia argues that unanimity would have been required. Hungarian Prime Minister Orbán voted against it, but the other EU countries found a workaround.
The European Commission has stated that it has taken note of the lawsuit. According to a spokesperson, the Commission is confident that the measure is legally sound and compliant with European law.
At the same time, other legal proceedings concerning the same assets are ongoing. Reports indicate that the Russian central bank has also filed a lawsuit in Russia against Euroclear, demanding a very large amount in damages.
Previously, Russia has stated that it does not accept rulings from European judges. Russia has also lost earlier legal cases in the EU involving seized bank assets of the Russian state oil company Gazprom.