Russian Central Bank Challenges EU Sanctions in Court

The Russian Central Bank has challenged an EU regulation at the bloc’s General Court, arguing that the measure interferes with its legal dispute with Belgian securities depository Euroclear.

Under the regulation, adopted as part of the EU’s 21st sanctions package in July, EU courts and member states can refuse to recognize or enforce certain decisions obtained in Russian courts.

Last year, the Russian Central Bank filed a lawsuit in Moscow seeking 18.2bn rubles ($215m) in damages from Euroclear over the freezing of its assets in Europe. A Moscow court upheld the ruling in May and rejected Euroclear’s appeal in July.

In June, Euroclear sued the Russian Central Bank in Belgium to prevent it from enforcing the Russian ruling. The central bank argues that the EU’s subsequent sanctions measure has tilted that legal battle in Euroclear’s favor by restricting its ability to enforce Russian court decisions.

The Kremlin has warned that using frozen Russian assets to support Ukraine would trigger extensive legal action. One possible response would be for the Russian Central Bank to seek the seizure of Euroclear assets in countries Moscow considers friendly, including China, the United Arab Emirates and Kazakhstan.

(Reuters, max)