Although Moscow's options are limited and come with risks, experts say Russia still has certain legal paths to pursue.
European Union (EU) leaders are discussing the use of tens of billions of euros in frozen assets of the Russian Central Bank to secure a loan to support Ukraine's military and financial needs in the next 2 years.
The majority of these assets are currently held at Euroclear, a Belgium-based financial clearinghouse.
In addition to political consideration, the legal aspect is a factor that makes many EU countries cautious. Belgium - where Euroclear is headquartered - has repeatedly requested strict legal guarantees to limit the risk of facing lawsuits or financial retaliations in the future.
Russia sues Euroclear
In that context, the Russian Central Bank last week filed a lawsuit against Euroclear with the Arbitration Court in Moscow, demanding the recovery of assets that have been frozen since the Ukraine conflict escalated in February 2022. Russia said the blockade was illegal and caused damage to both asset value and generated profits.
However, even in the case where a Russian court issues a ruling in Moscow's favor, enforcement in Europe is considered not simple. The EU has long had regulations limiting the recognition and enforcement of judgments related to frozen Russian assets.
Forced by bilateral agreements
Belgium also expressed concern about legal liability arising from the bilateral investment agreement signed with Russia in 1989. Belgian Prime Minister Bart de Wever said that all EU options need to take into account the financial risks inherent in this agreement.
However, according to legal analysis, the dispute resolution mechanism in the agreement is mainly aimed at Russian private investors in Belgium, rather than disputes related to central bank assets. This leaves many limits in the ability to apply the agreement in the current case.
Other options
Russia could theoretically seek national courts where its assets are held. However, this option would require Russia to accept a national exemption - a step that could have broader legal consequences.
Another way is to sue Euroclear in Belgian court. This is a road with a clearer legal basis, but also has the potential risk of counter-accusation from Euroclear, and the final result is uncertain to be fully implemented.
International courts
Russia could also seek to appeal the EU's decisions to the European Court of Justice, although this is a rare choice for non-member countries. In the past, some non-EU countries, including Russia and Venezuela, have pursued this path but have not achieved the desired results.
Other channels such as the European Court of Human Rights are no longer available to Russia, while the International Court of Justice in The Hague is considered difficult to access due to its authority.
