Moscow has accused the bloc of unlawfully using its sovereign funds to back a loan to Kiev
The General Court of the European Union has registered a Central Bank of Russia lawsuit against the European Parliament and the EU Council over the bloc’s €90 billion ($105 billion) loan to Ukraine.
The filing contests an EU mechanism adopted in February that allows proceeds from frozen Russian sovereign assets held in Europe to be used to repay a joint loan to Kiev, the central bank said.
Kiev’s Western backers froze about $300 billion in Russian sovereign state assets after the escalation of the Ukraine conflict in 2022. Moscow has repeatedly said any use of its frozen assets would amount to theft.
The Bank of Russia said the scheme amounts to “an illegal and disguised form of using assets as collateral for a loan,” arguing that it effectively legitimizes the expropriation of sovereign assets.
According to the regulator, the mechanism violates EU law, property rights, and the international legal principle of sovereign immunity afforded to states and central banks.
The lawsuit comes amid broader EU efforts to mobilize roughly €210 billion in frozen Russian assets to support Kiev. In December 2025, Brussels moved to keep the funds immobilized indefinitely, replacing the previous system under which sanctions had to be renewed every six months.
The Bank of Russia separately challenged that decision before the EU’s General Court in February. In that case, it argued that the asset-freeze regime infringes property rights, the right to effective judicial protection, and the sovereign immunity protections recognized under international law and EU legislation.
The regulator also claimed the measure was adopted through “serious procedural violations,” arguing that it should have required unanimous approval by EU member states rather than a qualified-majority vote.
The Bank of Russia is also locked in a legal dispute with Euroclear, the Belgium-based depository that holds the bulk of Russia’s frozen assets. Last month, Moscow’s arbitration court awarded the regulator $230 billion in damages. Euroclear has pledged to appeal.
