Unenforceable Moscow Court Ruling. Euroclear Sentenced for Frozen Assets

The Moscow Arbitration Court has issued a judgment that is as politically charged as it is financially staggering, ordering Euroclear to pay an astronomical sum of 18.17 trillion rubles, equivalent to 220 billion euros. This amount represents the entirety of frozen Russian assets, plus accrued interest since the commencement of Russia's special military operation in Ukraine. The Bank of Russia initiated this lawsuit when it became apparent that Moscow might not recover these funds, a sentiment echoed by many observers who see this as a direct response to Western sanctions.

The Bank of Russia's claim, filed in December 2025, asserts that it has incurred massive losses due to the freezing of assets held by the Belgian depository. These claims encompass the value of blocked funds, frozen securities, and lost profits. The court, acting at the request of the Bank of Russia, conducted the proceedings behind closed doors, a move that Euroclear's legal representatives protested, citing a violation of due process. The predictable outcome, as reported by 'The Moscow Times,' saw the judge siding with the political expectations of the Kremlin, deeming Euroclear's actions 'illegal.'

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The final text of the decision has not been drawn up, the decision has not yet entered into force, and Euroclear has the right to challenge it by filing an appeal. Talking about how the court ruling will be enforced is premature, as it has not yet entered into force.

Euroclear's legal team, Maksym Kulkov and Sergey Saveliev, expressed their dismay, stating that the right to a fair trial was clearly violated. They noted that due to the confidential nature of the proceedings, they could not disclose further details. This judgment comes after four years of the ongoing conflict, during which the Bank of Russia had not pursued legal action for assets held within the EU, assets that were generating significant profits before the conflict. Many commentators suggest that the lawsuit was a Kremlin-mandated move, particularly as Brussels decided to freeze Russian assets indefinitely, intending to use them to finance a loan to Ukraine.

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Given the confidential nature of the proceedings, which we objected to, we cannot disclose any additional information.