"The EU has agreed to indefinitely freeze Russia's sovereign assets in the bloc, as Moscow stepped up its threats to retaliate against Euroclear, the keeper of most of the Kremlin's immobilised money. The decision by the EU to use emergency powers to immobilise 210bn (185bn) of its central bank's assets marks a significant step towards using the cash to aid Ukraine's defence against Russia."
"The decision came hours after Russia's central bank said it was filing a lawsuit against Euroclear, the Brussels central securities depository that holds these assets. The organisation, once a little-known part of international financial plumbing that is now in the spotlight, has no say on how the frozen funds are used. The lawsuit, being filed in a Moscow court, claims Euroclear's illegal actions had caused damage to the central bank's ability to manage funds and securities."
The EU used emergency powers to indefinitely immobilise €210bn of Russia's central bank assets to enable potential use of the funds for Ukraine's defence. EU leaders committed to keep the assets immobilised until Russia ends its war of aggression against Ukraine and pays compensation for damage. Prior rules required sanctions to be renewed every six months, creating veto risks. Russia's central bank filed a lawsuit in Moscow against Euroclear, which holds the assets, alleging illegal actions harmed its ability to manage funds. Euroclear is defending over 100 legal claims in Russia. A proposed €90bn loan for Ukraine secured against the assets is blocked by Belgium over legal and asset-seizure concerns.
Read at www.theguardian.com
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