Moscow’s central bank sues EU over freeze on sovereign assets

The Bank of Russia has filed a lawsuit against the European Union, challenging the bloc’s decision to impose an indefinite freeze on Russian sovereign assets held since the invasion of Ukraine, Bloomberg reports.

The claim was lodged with the EU’s General Court in Luxembourg, contesting a regulation adopted by the European Council on Dec 12, 2025, according to a statement issued by the Russian central bank on Tuesday.

The central bank argued that the measure violates fundamental legal guarantees under international law, including access to justice, protection of property and the principle of sovereign immunity afforded to states and their central banks.

EU member states agreed in December to extend restrictions on approximately $246 billion in Russian sovereign assets that have remained frozen in the bloc since President Vladimir Putin ordered the full-scale invasion of Ukraine in February 2022.

The EU has said the assets will remain immobilised until the war ends and Russia provides reparations to Ukraine.

Most of the frozen funds are held by Euroclear, while Belgium has resisted EU proposals to deploy the assets as backing for a loan to support Ukraine.

Although the lawsuit centres on legal and procedural questions, the case could expose the Russian regulator to closer scrutiny of its financial actions linked to Moscow’s war effort, which is now in its fifth year.

According to the central bank, the regulation prohibits any transfer of the assets for an unlimited period and restricts its ability to pursue legal remedies, including the enforcement of court rulings or arbitration decisions related to the funds.

It also alleged that the European Council breached EU procedures by approving the regulation through a majority vote instead of unanimity.

The European Commission acknowledged the lawsuit.

Spokesperson Balazs Ujvari told reporters on Tuesday that the bloc was confident in the legality of the regulation and its compliance with both EU and international law.

Shortly after the regulation was introduced, the Russian central bank warned the EU that it would pursue compensation through domestic courts against European financial institutions if the frozen assets were used to support Ukraine.

In December, it also filed a separate lawsuit in Moscow seeking $235 billion in damages from Euroclear.