Russia's central bank said today that plans by the European Union to use its assets were illegal and that it reserved the right to employ all available means to protect its interests.
In a separate statement, the central bank said it was suing Brussels-based financial institution Euroclear - which holds many of the assets - in a Moscow court over what it said were damaging actions, affecting its ability to dispose of its funds and securities.
"Mechanisms of direct or indirect use of the assets of the Bank of Russia, as well as any other forms of unauthorized use of the assets of the Bank of Russia, are illegal and contrary to international law, including violating the principles of sovereign immunity of assets," the bank said.
Euroclear did not immediately respond to a request to comment.
The bank referred to a European Commission press release, published on December 3, which outlined two solutions to support Ukraine's financing needs in 2026 and 2027.
Under one of those solutions, the Commission would be able to borrow cash balances from EU financial institutions holding frozen assets of the Russian central bank to issue a reparations loan for Ukraine.
Russian officials have repeatedly said such action would be met with "the harshest reaction".
European Union governments want to agree today to freeze Russian central bank assets immobilised in Europe for as long as necessary, replacing the need for a vote to renew the freeze every six months, EU diplomats said.
Russia's central bank said implementation of such plans would be challenged in "national courts, judicial authorities of foreign states and international organisations, arbitral tribunals and other international judicial instances, followed by the enforcement of judicial decisions in the territories of UN member states".
