š Share this article Russia Seeks Staggering Sum in Damages from Clearing House Regarding Seized Funds The Russian central bank has announced it is claiming compensation amounting to $230 billion from the securities depository Euroclear. This action represents a clear warning from the Kremlin against proposals to use immobilized Russian state funds to support Ukraine. The Legal Claim Based on accounts in Russian state media, the central bank filed a claim last week for approximately 18 trillion roubles. This sum corresponds to the stated $230 billion demand. European Union officials will determine in the coming days regarding a proposal to leverage around ā¬210 billion in immobilized Russian assets. The proposal entails granting Ukraine with a large loan to fund its defence and economic stability. Most of these funds, totaling ā¬185 billion, reside at the Euroclear depository in Brussels. This institution acts as the primary keeper for the Kremlin's frozen sovereign wealth. Dispute on Ownership European Union officials have argued that their proposal is on solid legal ground. Their position is based on the fact that ownership of the state assets remains with Russia, even though it was frozen in European countries following the full-scale invasion of Ukraine. Moscow, in contrast, has labeled any use of the assets as illegal appropriation. Authorities have warned of retaliatory actions, such as seizing EU private investors' assets within Russia. The head of Russia's sovereign wealth fund, who has assumed a key position in peace negotiations, wrote on a social media platform that Russia "will prevail in court" and regain its assets. He added that the EU, the euro, and Euroclear "will face consequences" from the proposal. Strategic Positioning In comments seen as an attempt to drive a wedge between Europe and the United States, Dmitriev characterized the assets plan as "a vicious attack on the right to ownership and the global financial system established by the United States." The clearing house declined to provide a statement on the latest legal action. The institution has previously stated it is contending with over 100 lawsuits in Russian courts. Legal Hurdles Ahead Although judges in EU countries are not expected to recognize rulings from Russian courts, experts expect Moscow to seek enforcement in nations with closer ties to the Kremlin. "Russian monetary authorities may attempt to enforce a Russian legal ruling against Euroclear in countries such as China, Hong Kong, the UAE, Kazakhstan, and other sympathetic states, provided that relevant assets can be identified," stated a lawyer from an international firm. European Safeguards European authorities indicated they are working on steps to deter other nations from aiding any Russian legal action against European companies. Additionally, they are designing protections to protect EU countries with assets in Russia from what they call "unlawful expropriation." How the Funding Would Work Under the complex plan, the EU would issue an initial ā¬90 billion loan to Ukraine, using the proceeds earned from the immobilized assets at Euroclear. Critically, Russia's legal claim on the underlying funds would remain unaffected. Kyiv would only be required to return the money in the event that Russia consented to pay compensation for the immense destruction inflicted during the nearly four-year conflict. Alternative Proposals The Belgian government, backed by Italy, Bulgaria, and Malta, has urged the EU to consider an alternative approach for financing Ukraine. This involves joint EU borrowing to secure a loan, using unallocated funds within the EU budget. This alternative move, however, requires full agreement among all 27 member states. The Hungarian government, considered friendly with the Kremlin, has previously signaled its objection. Commenting on Monday, the EU foreign policy chief, a senior official, described the proposed loan scheme as "the strongest option" for supporting Ukraine. "This mechanism is secured against the Russian immobilized funds, which means it doesn't come from our public funds, which is also significant," she remarked. "Furthermore, it sends a powerful message that when you cause all this destruction to another country, you have to pay for the rebuilding."