Russian court rejects Euroclear appeal over $250 billion frozen-assets ruling

A Russian court has rejected an appeal by Brussels-based securities depository Euroclear against a ruling ordering it to pay approximately $250 billion in damages over frozen Russian assets, Belgian broadcaster RTBF reported Friday.

The Moscow District Arbitration Court dismissed the appeal Oct. 22, upholding an earlier judgment in favor of Russia’s central bank, according to Euroclear’s third-quarter financial results.

The company had previously challenged the ruling issued in May, but its initial appeal was rejected in July.

Euroclear said it would continue defending its interests, including through legal proceedings in Belgium, while reaffirming its commitment to market stability, the rule of law and protecting its clients.

The dispute stems from European Union sanctions imposed following Russia’s invasion of Ukraine in February 2022, which froze billions of dollars in Russian central bank assets held by the depository.

Russia’s central bank filed a lawsuit against Euroclear, arguing that the restrictions unlawfully prevented it from managing its international reserves.

The legal battle unfolded amid EU discussions about using the frozen assets to finance Ukraine. Belgian Prime Minister Bart De Wever opposed the proposal over legal uncertainties and financial risks, ultimately securing enough support to block it.

Euroclear faces several other lawsuits in Russia and has set aside €162 million ($181 million) in provisions for claims in Russian courts, according to its financial results.