Russia has few legal options to challenge EU frozen asset plan

FILE - A view of the headquarters of Euroclear in Brussels, on Oct. 23, 2025. Photo by Geert Vanden Wijngaert /APArticle contentTHE HAGUE, Netherlands (AP) — A core question for European Union leaders discussing whether to use frozen Russian assets to help Ukraine is whether the idea is legally sound. But even if they approve the plan, Russia has limited options for challenging it in court.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe 27-nation bloc’s leaders are set to decide on whether to use tens of billions of euros in frozen Russian Central Bank assets to underwrite a loan to meet Ukraine’s military and financial needs over the next two years. The bulk of the assets are held in Belgium-based financial clearinghouse Euroclear.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentBelgium said Thursday that it wants ironclad guarantees that it will be protected from retaliation — legal, financial or otherwise — and that’s become a major stumbling block.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentRussia tries targeting EuroclearArticle contentRussia’s Central Bank filed a complaint last week at Moscow’s Arbitration Court against Euroclear, trying to recover the assets that have been frozen since the start of the full-scale invasion of Ukraine on Feb. 24, 2022.Article contentThe central bank said in a statement that the lawsuit was over the “illegal blocking and use of its assets, in the amount of the illegally withheld assets and lost profits.”Article contentShould the central bank prevail, it would struggle to collect on any judgment. For more than a decade, the EU has banned enforcement of Russian court judgments involving the frozen assets.Article contentBelgium has voiced repeated concerns about its liability under a 1989 treaty with Russia encouraging economic ties between the countries.

Belgian Prime Minister Bart de Wever said on Thursday that any EU plan must take into account the “financial risks arising from the bilateral investment treaty.”Article contentArticle contentThe arbitration options provided in the treaty are limited and designed for Russian companies investing in Belgium. The mechanism is for “disputes between a private investor and the state in which the investment was made,” lawyer Patrick Heinemann, who co-authored a legal risk analysis on the topic, told The Associated Press.Article contentOther optionsArticle contentRussia could try to file a lawsuit in any domestic court in the world where its assets are held, but would have to waive its own state immunity to do so — opening itself up to a host of other legal challenges, Heinemann says. And Belgium, or any other country holding Russian assets, would have to agree to waive their own immunity for a lawsuit to proceed.Article contentMoscow could challenge Euroclear, a private company, in a Belgian court, but would then in turn be vulnerable to a countersuit by Euroclear and any outcome would likely be unenforceable in Belgium.Article contentA last resortArticle contentAlthough Russia isn’t part of the EU, it could contest any decision made by Brussels at the bloc’s top court in Luxembourg. It’s rare for nonmember states to bring complaints at the Court of Justice of the European Union, but it has happened, including by Moscow over EU sanctions packages. That complaint was found to be inadmissible.Trending Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Posthaste: Here's where home prices plunged the most in tough year for Canada's housing market News Welcome to the K-shaped economy: Canadians look back on a 'brutal,' 'great' year in Trump's trade war Economy Trump official signals support for trade deal with Canada, Mexico Economy World watches as Ottawa's bullish shift on LNG puts wind at the back of two major projects Oil & Gas Article contentMore recently, Venezuela went after the EU over sanctions placed on the South American country over human rights abuses. Caracas was also unsuccessful, with judges finding Brussels has wide latitude over foreign security policy.Article contentThe European Court of Human Rights kicked Russia out following the full-scale invasion, closing off Moscow to that option.Article contentThe United Nations’ top court, the International Court of Justice based in The Hague, is also an unlikely arena, says Mike Becker, an expert on international human rights law at Trinity College Dublin.Article content“It is not clear that any treaty in force confers jurisdiction upon the Court to hear such a case,” he told the AP.Article contentA recent white paper by law firm Covington & Burling came to a similar conclusion, noting that “Russia does not accept the compulsory jurisdiction of the Court.”Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Posthaste: Here's where home prices plunged the most in tough year for Canada's housing market News Welcome to the K-shaped economy: Canadians look back on a 'brutal,' 'great' year in Trump's trade war Economy Trump official signals support for trade deal with Canada, Mexico Economy World watches as Ottawa's bullish shift on LNG puts wind at the back of two major projects Oil & Gas