Russian central bank slams EU plan to tap frozen assets as 'illegal'
Moscow’s central bank warns it will challenge EU’s proposal to borrow against frozen Russian assets for Ukrainian financing, calling the move a violation of sovereign immunity and international law.
Russia's central bank has said published proposals by the European Union to use its assets are illegal and that it reserves the right to employ all available means to protect its interests.
"Mechanisms of direct or indirect use of the assets of the Bank of Russia, as well as any other forms of unauthorised use of the assets of the Bank of Russia, are illegal and contrary to international law, including violating the principles of sovereign immunity of assets," the bank said on Friday.
The bank referred to an EU Commission press release, published on December 3 which outlined two solutions to support Ukraine's financing needs in 2026 and 2027.
Under one of those solutions, the EU Commission would be able to borrow cash balances from EU financial institutions holding frozen assets of the Russian central bank to issue a reparations loan for Ukraine.
Belgium, the country where most of the assets are held, has rejected the EU plan, saying the scheme poses major financial and legal risks.
Belgium fears that the Brussels-based financial clearing house holding the frozen assets, Euroclear, could take legal action if Russia challenges any use of the funds or if the move harms its image and business interests.
Russian officials have repeatedly said that tapping the frozen assets would be met with "the harshest reaction".
The central bank said implementation of such plans will be challenged in "national courts, judicial authorities of foreign states and international organisations, arbitral tribunals and other international judicial instances, followed by the enforcement of judicial decisions in the territories of UN member states".