Commenting for TASS on the Bank of Russia initiative to go to court to protect its financial interests, Kirill Chernovol, Researcher at the Gaidar Institute's International Best Practices Analysis Department, expressed confidence that the Central Bank would be able to initiate a second lawsuit against Euroclear, in addition to the current lawsuit in the Moscow Arbitration Court.
Currently, Russian assets worth about €300 bn are frozen, with most of these funds, about €180 bn, held in the Belgian depository Euroclear. The Central Bank of Russia has filed a claim with a Russian court for compensation for losses incurred as a result of Euroclear's unlawful actions. At the same time, the possibility of filing an additional lawsuit directly in Belgium is being considered.
Kirill Chernovol highlighted the advantages of the first step taken within the Russian justice system: "It is easier to legally establish the fact of damage in a Russian court. Further, provisional measures and attempts to seize Euroclear's assets in Russia are possible. According to the depository's own estimates, the amount of the claim could be up to €16 bn. At the same time, the lawsuit in the Moscow Arbitration Court does not prevent the Bank of Russia from simultaneously filing a lawsuit against Euroclear SA/NV in a Belgian court. The Bank of Russia is likely taking these actions against the backdrop of rhetoric from EU countries about the possible confiscation of Russian assets held by Euroclear."
The expert also explained why international courts are not involved. “To hear a case in international arbitration or, for example, in the UN International Court of Justice, you need jurisdiction and usually the consent of the parties or states. And Euroclear is a private company,” Kirill Chernovol noted.