Russia’s investment chief predicts EU setback in frozen assets dispute

The head of Russia’s sovereign wealth fund has warned that European attempts to use frozen Russian assets for Ukraine could backfire legally and financially.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said in a statement on X that EU officials “know using Russian reserves without the Central Bank of Russia’s consent is illegal,” adding that this could undermine the system of reserves built by the US and increase costs across the board.

He predicted that Russia would succeed in court and recover the funds, with EU guarantors ultimately responsible for covering Ukraine’s expenses. Dmitriev also suggested that the European Union, the euro, and Euroclear, a major financial clearing system, could suffer as a result.

Earlier, Russia’s Central Bank (CBR) filed a lawsuit in a Moscow commercial court against Belgium-based Euroclear, accusing the securities depository of unlawfully blocking access to its frozen funds and securities.

The legal action comes as the EU moves to use income from €210 billion in Russian assets frozen across the bloc to fund Ukraine in 2026-2027. EU ambassadors recently agreed to keep the assets frozen without six-month renewals, preventing potential vetoes by Hungary and Slovakia.

EU finance ministers must still formally approve the measure, with broader discussions expected at the EU summit on December 18.

Euroclear holds the largest portion of Russia’s frozen assets in Europe, €185 billion. The CBR said Euroclear’s actions caused financial harm and is seeking compensation for losses.

By Aghakazim Guliyev