Russia has strongly opposed a proposal by the European Union (EU) to use about €210 billion in frozen Russian central bank assets as backing for loans to support Ukraine, describing the move as illegal and a violation of international law.
The proposal, which EU leaders are expected to deliberate on at a summit later this month, would allow the bloc to indefinitely freeze Russian sovereign assets and use them as collateral to finance Ukraine’s defence and civil needs in 2026 and 2027.
In response, the Russian Central Bank on Friday filed a lawsuit in a Moscow court against Euroclear, the Belgium-based financial depository holding most of the frozen funds.
The bank is seeking damages over its inability to manage or access the assets.
Russia also warned it would challenge any use of the funds in both national and international courts.
According to Reuters, the EU plans to remove the requirement for all 27 member states to unanimously renew sanctions every six months, a move that would clear procedural hurdles to keep the assets frozen indefinitely.
European officials estimate that Ukraine faces a €135.7 billion financing gap over the next two years, necessitating predictable and long-term funding mechanisms.
Under the proposal, the frozen Russian assets would serve as collateral for what some officials describe as a “reparations loan,” to be repaid only if Russia compensates Ukraine for war-related damages.
In an official statement, the Russian central bank said any direct or indirect use of its assets violates international law and the principle of sovereign immunity.
“Any unauthorised use of the assets of the Bank of Russia is illegal and contrary to international law,” the statement said.
Russian officials and analysts have gone further, describing the plan as “theft” and warning of possible retaliatory measures if the EU proceeds.
Despite Russia’s objections, EU ambassadors and finance ministers are expected to finalise procedural steps ahead of a December 18 summit in Brussels, where the loan proposal will be formally debated.
European leaders have indicated they remain determined to push ahead, viewing the plan as essential to sustaining Ukraine amid the ongoing war.
