The Bank of Russia has initiated legal proceedings against the European Union over the indefinite freeze of assets imposed in response to Moscow’s invasion of Ukraine, marking the first such challenge by the central bank since the war began.
According to a statement published Tuesday, the claim was filed with the EU’s General Court in Luxembourg and contests a regulation adopted by the European Council on December 12, 2025. The Russian central bank argues that the asset freeze deprives it of legal protections, framing the move as a breach of its rights under EU law.
The lawsuit targets measures that have blocked Russian central bank assets within the European Union as part of the bloc’s sanctions regime against President Vladimir Putin’s government. Since the start of the conflict in Ukraine, Western authorities have immobilised substantial Russian sovereign reserves held abroad, significantly restricting Moscow’s access to foreign currency resources.
By bringing the case before the General Court, the Bank of Russia is seeking judicial review of the Council’s regulation. The action places the dispute within the EU’s legal framework, where the court has jurisdiction to assess the legality of restrictive measures adopted by member states. The filing signals a formal escalation from diplomatic objection to direct litigation within European institutions.
The challenge unfolds amid ongoing debates in Europe over the treatment of frozen Russian assets and their potential use in supporting Ukraine. While the central bank’s claim focuses on procedural and legal protections rather than political arguments, the outcome could influence how future sanctions are structured and defended in court.
For financial markets, the case underscores the intersection of geopolitics and cross-border asset management, as sovereign reserves and central bank protections become subject to unprecedented legal scrutiny within the EU system.
