Russia hits back with legal action amid European plan to loan $90bn in frozen cash to Ukraine
Russia had around €210bn frozen in the EU just days after its full-scale invasion of Ukraine over four years ago
Russia is set to launch legal action against European nations planning on using Moscow's frozen assets to help fund Ukraine.
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Russian officials are accusing the EU of theft and the country's Central Bank is suing Belgian bank Euroclear in court.
Ukraine's allies in Europe plan on helping to plug the country's €135.7 billion budget hole caused by the war by using frozen assets held by Euroclear.
Leaders across the continent hope to sign off the deal at their Brussels summit next week, according to reports.
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Russia had around €210bn of its cash frozen in the EU just days after its full-scale invasion of Ukraine over four years ago.
The EU and Ukraine argue that part of the money should be used to rebuild the damage caused by the Russian invasion, and plan to use €90 billion to support Ukraine.
Ukraine's Volodymyr Zelenskyy said: "It's only fair that Russia's frozen assets should be used to rebuild what Russia has destroyed – and that money then becomes ours."
German Chancellor Friedrich Merz added that the assets will "enable Ukraine to protect itself effectively against future Russian attacks."
However, Euroclear's chief executive Valérie Urbain says using it could "destabilise the international financial system".
It also has an estimated €16-17 billion immobilised in Russia.
Belgian Prime Minister Bart de Wever has set the EU a series of "rational, reasonable, and justified conditions" before he will accept the reparations plan.
He has also refused to rule out legal action if it "poses significant risks" for his country.
The EU has two proposals aimed at supporting Ukraine with €90 billion which would cover two-thirds of its funding requirements.
The first is to raise the money on capital markets which backed by the EU budget as a guarantee but needs a unanimous vote by EU leaders.
Doubt has been cast over this option after Hungary and Slovakia objected to funding Ukraine's military.
The other option is to loan Ukraine cash from the Russian assets. The money is Euroclear property held in the European Central Bank.