Russia: Russia's central bank on Friday said EU plans to use its frozen assets are illegal, and threatened to challenge the proposal. "Mechanisms of direct or indirect use of the assets of the Bank of Russia, as well as any other forms of unauthorized use of the assets of the Bank of Russia, are illegal and contrary to international law, including violating the principles of sovereign immunity of assets," the bank said in a statement.

According to Anadolu Agency, the central bank stated that the use of the assets to issue a reparation loan for Ukraine will be challenged in "national courts, judicial authorities of foreign states and international organizations, arbitral tribunals and other international judicial instances, followed by the enforcement of judicial decisions in the territories of UN member states."

In a separate statement, the central bank announced it will file a lawsuit in a Russian court against Euroclear, the Brussels-based financial clearing house holding the frozen assets, for losses incurred due to the freezing of its assets. "The actions of the Euroclear depository have caused damage to the Bank of Russia due to the inability to manage funds and securities belonging to the Bank of Russia," the readout stated.

A significant portion of about $325 billion worth of Russian assets frozen globally is held in Europe. The EU proposes making some of it available to Kyiv to cover its financial needs for 2026 and 2027. However, Belgium has opposed the EU plans, citing potential legal consequences and risks to the peace process.

The European Central Bank has also expressed concerns that the proposal could undermine confidence in the euro in global markets. EU leaders are set to decide on whether to use the frozen Russian assets for Ukraine at a summit in Brussels on Dec. 18.