Euroclear Sues Russian Central Bank over €220bn Ruling

Euroclear has filed a lawsuit against the Central Bank of Russia in a Belgian civil court to block enforcement of a ruling by the Moscow Arbitration Court.

Last month, the Moscow court ordered the Brussels-based securities depository to pay around €220bn ($260bn) in damages over the freezing of Russian assets under EU sanctions.

Euroclear argues that it acted in accordance with European law and that Russian courts have no jurisdiction over the company. It maintains that only Belgian courts have authority over the dispute.

The Russian central bank said it was aware of the lawsuit and was preparing its legal defense. While the Moscow ruling is expected to have little practical effect within the European Union, where Euroclear is protected by EU law, there are concerns that Russia could seek to seize the company's assets in jurisdictions it considers friendly, such as China, the United Arab Emirates or Kazakhstan.

(Reuters, mja)