The Central Bank of Russia has filed a lawsuit in the Moscow Arbitration Court against the Belgian depository Euroclear for the recovery of approximately €200 billion.

MOSCOW: The Central Bank of Russia has filed a lawsuit in the Moscow Arbitration Court against the Belgian depository Euroclear for the recovery of approximately €200 billion.

This amount represents losses and lost profits from assets frozen due to sanctions since the spring of 2022. The Central Bank accuses Euroclear of abuse of rights and violation of Russian public order.

Preliminary hearings in the case began behind closed doors at the request of the Central Bank of Russia, citing state secrets. A Euroclear representative, who hired a Russian lawyer to defend the case, did not object but demanded that the case be dismissed. His argument is that, by agreement of the parties, all disputes should be heard in Belgian courts.

Most Russian legal experts believe that the Central Bank is highly likely to win the case in Russian jurisdiction. However, the Russian court's decision is not enforceable in the European Union, where Euroclear has no assets to recover. The real leverage lies in the assets of European banks operating in Russia, which could be seized if the situation worsens.

The Central Bank of Russia's strategic calculation is that the lawsuit is filed not for the return of the securities themselves, but for compensation for damages from their blocking. Over nearly four years, this amount has equaled the value of the assets. Such a claim is easier to substantiate, even in international courts, since it challenges not the legality of sanctions, but the actions of a private company that violated the agreement and transferred profits from Russian assets to the EU budget.