Russia has initiated legal action against Euroclear, demanding over 18 trillion rubles ($225.2 billion) in compensation for frozen assets, as EU leaders convene in Brussels to debate using these funds to support Ukraine. The Moscow Arbitration Court will hold a preliminary hearing on January 16, 2026, marking a critical juncture in the financial fallout from the ongoing Russia-Ukraine conflict.
EU discussions center on a proposed "reparation loan" backed by frozen Russian assets, with Ukrainian President Volodymyr Zelenskyy urging swift action. However, Belgium has raised legal and financial stability concerns, warning that asset confiscation could trigger retaliatory measures from Russia and destabilize Euroclear, which manages 90% of the EU-held Russian central bank assets.
Internal EU divisions persist, with Hungary and Slovakia opposing the plan. Meanwhile, Russia's Foreign Ministry condemned the asset freeze as "theft" and hinted at potential countermeasures, including seizing EU corporate assets in Russia and restricting critical exports.
As U.S. officials prepare for renewed mediation talks, the outcome of this high-stakes financial and legal battle could reshape Europe's economic landscape and global investor confidence.
