Central Bank of Russia challenges in EU court regulation allowing regulator's assets to support Ukraine

MOSCOW. May 25 (Interfax) - The Central Bank of Russia has challenged the European Union decisions allowing the use of the Russian regulator's assets to support Ukraine.

According to a statement from the Central Bank, the regulator on May 22 filed an application with the General Court of the European Union in Luxembourg challenging the regulation of the European Parliament and of the Council dated February 24, 2026.

"The appeal concerns the legal and financial mechanism created by the European Union act to provide support to Ukraine in 2026-2027," the Central Bank said.

"The regulation allows for an interpretation that Ukraine will repay the loan provided to it using the Russian Central Bank's assets, which constitutes an illegal and disguised form of using assets as collateral for the loan and/or the subsequent legalization of the expropriation of sovereign assets," the Central Bank emphasized.

The CBR believes that this EU regulation, in terms of its content and legal consequences, goes beyond ordinary measures of financial and economic cooperation with a third country.

"The contested mechanism treats the sovereign assets of the Central Bank of Russia as an element of financial support for a third state, altering the legal and economic regime of sovereign assets, and thereby violates the norms of European Union law, fundamental rights, and applicable principles of international law, including the immunity of states and their central banks," the CBR said.

The application was filed under Article 263 of the Treaty on the Functioning of the European Union and is a continuation of the Central Bank's work to protect its rights and legitimate interests in connection with EU measures against its assets, the Central Bank said.

The CBR said that it reserves all rights, claims, objections, and legal remedies in all jurisdictions available to challenge any "unlawful measures" of the EU or individual member states against the Central Bank or its assets.

The CBR also filed an application with the General Court of the European Union on February 27, 2026, challenging the EU Council regulation introducing an indefinite freeze of the Central Bank's assets.