Russia is planning a lawsuit to prevent any attempts by the United States or Europe to confiscate some of its $300 billion in frozen central bank assets in favor of Ukraine, Bloomberg reports, citing people familiar with the situation, UNN reports.
Details
According to the report, citing sources, officials in Moscow who are studying the possibility of confiscating the funds have concluded that such an outcome is unlikely. The Bank of Russia is now close to concluding an agreement with international law firms to represent the country's interests in the event of a trial, the newspaper writes.
According to the sources, the Russian authorities have also commissioned an expert review of relevant legislation abroad and precedents in other countries.
According to the publication, the administration of US President Joe Biden is currently supporting legislation that would allow it to confiscate some Russian assets. The White House wants to coordinate this move with G7 allies, especially in Europe, where about two-thirds of frozen Russian funds are held and where support for confiscation, especially unilateral confiscation, has been lukewarm.
Bloomberg: White House backs confiscation of frozen Russian assets11.01.24, 05:45
The Bank of Russia refused to comment on its plans. Asked about the consequences of possible Western moves, Kremlin spokesman Dmitry Peskov said Russia would challenge them in court and warned that it could take retaliatory measures, according to RosSIA.
"Officials who participated in the discussion are confident that the court case will prevent any transfer of funds to Ukraine, even if Russia fails to seize control of the money," the newspaper writes, citing sources.
In their opinion, the West has little chance in court and has no legal grounds for arrest based on the legislation adopted after the freeze, they said.
According to Sergey Glandin, partner at BGP Litigation in Moscow, who specializes in compliance and sanctions law, the possibility of legal action by Russia depends on the circumstances of the actions taken and the existence of a bilateral investment protection agreement.
According to him, possible avenues for Russia could include the International Court of Justice in The Hague or the U.S. District Court for the Southern District of New York and the EU Court of Justice in Luxembourg.
An attempt to seize the assets would lead to numerous legal disputes in court "for many years," Glandin said, warning in response of a "war of confiscation.
US suggests G7 explore ways to confiscate $300bn worth of Russian assets. - FT28.12.23, 12:17