Russia Threatens EU With Court Action as Europe Advances ‘Aggressor Pays’ Model for Ukraine

Russia’s Central Bank says it has opened a new legal front against the European Union over frozen sovereign reserves, as Europe increasingly develops an “aggressor pays” model aimed at making Moscow bear more of the financial cost of its war against Ukraine. The Bank of Russia said Thursday that it filed a challenge with the EU General Court on Sept. 15 against provisions introduced under the bloc’s 21st sanctions package in July.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. The contested measure allows EU courts and member states to block the recognition or enforcement of certain Russian court decisions in other jurisdictions. The Russian regulator called the measure a “direct attempt” to interfere in ongoing proceedings in Belgium involving Euroclear, the Brussels-based securities depository holding the bulk of Russia’s immobilized sovereign assets in Europe. The Kremlin has repeatedly threatened that EU efforts to use frozen Russian assets for Ukraine could create a “legal nightmare” for the bloc. Euroclear rejects Moscow’s claim At the end of June, Euroclear held €202 billion (about $230.2 billion) linked to sanctioned Russian assets A Moscow court ruled in May in favor of the Russian Central Bank in its claim against Euroclear. Euroclear has strongly rejected Moscow’s case. The company called the Russian Central Bank’s claim “without merit,” said such claims are not recognized under EU law and said it does not recognize the Russian court’s jurisdiction. Euroclear has also turned to Belgian courts to prevent enforcement of the Moscow judgment. Other Topics of Interest Russian Drone Attack on Kyiv Injures Man, Hits Non-Residential Building The evening strike in Podilskyi district came hours after an overnight Russian barrage left 20 people injured in the capital. With enforcement blocked inside the EU, Russia could attempt to pursue Euroclear assets elsewhere, including in China, the United Arab Emirates and Kazakhstan, countries Moscow considers friendly. Europe builds an ‘aggressor pays’ model The dispute now reaches far beyond Euroclear. European leaders have increasingly linked Russia’s frozen wealth to the principle that Moscow should ultimately bear the financial consequences of the invasion it launched. The European Council has said Russian assets should remain immobilized until Russia ends its war of aggression and compensates Ukraine for the damage caused. That principle has also been built into the EU’s €90 billion Ukraine Support Loan for 2026–27. Under the arrangement, Ukraine is expected to repay the loan only after Russia pays reparations. Until then, Russian assets remain immobilized, and the EU has reserved the right to use them to repay the loan in accordance with EU and international law. The structure shifts the long-term repayment burden away from Ukraine until compensation is provided by Russia. Reparations process already underway The concept is not limited to EU sanctions policy. In November 2022, the UN General Assembly recognized the need for an international mechanism to provide reparations for damage, loss and injury resulting from Russia’s internationally wrongful acts in or against Ukraine. It also recommended establishing an international register of damage. The Council of Europe-backed Register of Damage for Ukraine now records claims for losses caused by Russia’s aggression, including damage suffered by individuals, companies and the Ukrainian state. The Register does not itself award compensation but is designed as the first stage of a future international compensation mechanism. That broader framework means Moscow’s fight over frozen reserves is unfolding alongside an international process aimed at documenting what Russia may ultimately be required to compensate. PACE Pushes Beyond Profits Toward Russia’s Principal The pressure on Moscow is also growing from the Council of Europe. Earlier this month, a PACE legal affairs panel backed a proposal that could allow frozen Russian Central Bank assets themselves – not just the profits they generate – to be used to satisfy compensation awarded to Ukraine under European Court of Human Rights rulings. The committee argued that repurposing Russian state assets could constitute a lawful countermeasure under international law, potentially opening another route for turning immobilized Russian reserves into compensation for damage caused by the war. The proposal is expected to go before the full Parliamentary Assembly on Sept. 30. Russian money already supporting Ukraine Europe has so far largely distinguished between Russia’s frozen principal and the income those assets generate. The underlying Central Bank reserves remain immobilized, while extraordinary profits and interest generated by them have increasingly been directed toward Ukraine. By August, immobilized Russian assets had generated about €8 billion in windfall profits, according to the European Commission. “Russia must pay for the destruction it has caused,” Commission President Ursula von der Leyen said when announcing the latest transfer. The EU says €3.8 billion in proceeds from immobilized Russian assets has already contributed to its overall support for Ukraine. Separately, the €90 billion Ukraine Support Loan includes €60 billion for defense across 2026–27. In August, the European Commission approved another €6.1 billion under that loan for air and missile defense systems, missiles, ammunition and radars urgently needed by Ukraine. Who ultimately pays? The legal battle is therefore increasingly about more than access to frozen accounts. Moscow is trying to protect its sovereign wealth and prevent Russian court judgments from being blocked abroad. European governments, meanwhile, are keeping those reserves immobilized, using the income they generate to support Ukraine and linking Kyiv’s future repayment obligations to Russian reparations. The emerging “aggressor pays” approach rests on a straightforward principle already reflected in EU policy: Ukraine, the country attacked, should not be left alone with the financial burden of defending and rebuilding itself. Sevinj Osmanqizi is an experienced journalist who writes extensively for Kyiv Post on foreign policy, international security and geopolitics. Based in Washington, D.C., her work focuses on Ukraine, Russia’s war and the broader post-Soviet space.