Moscow court orders Euroclear to pay $252 billion in frozen asset dispute

A Moscow arbitration court granted the Russian central bank immediate enforcement of a $252 billion judgment against Euroclear, escalating the legal battle over frozen sovereign assets.

The Moscow Arbitration Court on Tuesday granted the Bank of Russia's motion for immediate enforcement of a record 18.17 trillion-ruble ($252 billion) damages award against Euroclear, bypassing the standard appeal period in a case tied to Russian assets frozen under European Union sanctions.

"The hearing was scheduled just two days ago, which deprived us of defense," Maxim Kulkov and Sergey Savelyev, lawyers representing Euroclear, said in a statement criticizing the court process.

The original ruling on May 15 upheld the central bank's claim that Euroclear must compensate Russia for assets immobilized after the EU unveiled plans to use the frozen funds to back a loan to Ukraine. Of the roughly 300 billion euros ($350 billion) in Russian sovereign reserves frozen by Western countries since March 2022, about 180 billion euros sits at the Belgian clearing house. The Bank of Russia filed the initial lawsuit in December 2025.

While the ruling carries limited enforceability in EU jurisdictions where Euroclear operates, the Russian central bank could pursue seizure of Euroclear assets in countries Moscow considers friendly, including China, the United Arab Emirates and Kazakhstan. The decision adds a new layer of legal uncertainty for European financial institutions holding Russian assets and could escalate the broader sanctions dispute.

The Bank of Russia on Monday also filed a second claim with the General Court of the European Union, challenging the Feb. 24, 2026 regulation that allows using Russia's frozen sovereign assets to repay the EU's loan to Ukraine. The central bank argued the regulation "treats its sovereign assets as an element of financial support for a third country, altering the legal and economic regime of sovereign assets," according to a statement.

Under Russian law, courts may order immediate enforcement if any delay could lead to significant losses or make enforcement impossible. The Bank of Russia said it considered the ruling justified, noting "the real risk that any delay in enforcement would further postpone the restoration of the violated rights."

The practical impact of the Moscow ruling remains limited by jurisdictional boundaries. EU law shields Euroclear from liability for complying with sanctions, and Russian court orders have no direct effect in Belgium or other member states. However, the ruling opens the door for Russia to pursue Euroclear assets in third countries where the clearing house maintains operations.

The last time Russia pursued a similar enforcement strategy against a Western financial institution was in 2024, when a Moscow court ordered the seizure of Deutsche Bank assets in Russia in a dispute over a gas terminal project. That case was eventually settled, but it established a precedent for using Russian courts to target foreign financial firms.

The dispute over frozen assets has become a central front in the broader economic conflict between Russia and Western nations. The EU and G7 have held approximately 300 billion euros of Russian central bank reserves since March 2022, with interest generated on those assets now being directed toward Ukraine. The EU's loan mechanism, which the central bank is challenging in European courts, ties repayment to future Russian reparations payments.

For Euroclear, the ruling adds to a growing list of legal challenges stemming from its role as the primary custodian of Russian assets in Europe. The depository has faced lawsuits in multiple jurisdictions as both Russia and Western governments seek to leverage the frozen funds for their respective objectives.

This article is for informational purposes only and does not constitute investment advice.