GlobalWide News
Bloomberg: Russia is preparing for court proceedings in case the Russian assets frozen in the West are seized in favor of Ukraine. The Bank of Russia is currently drafting agreements with international law firms that would represent the country’s interests in court if necessary. Russian authorities have also commissioned expert opinions analyzing relevant legislation abroad and precedents in other countries, the interlocutors told Bloomberg.
▪️ Going to court has been an option long talked about by senior Russian officials, with Central Bank chief Elvira Nabiullina saying last July that she was “almost ready” to challenge the freeze. In a December interview with the RBC newspaper, Nabiullina called the asset confiscation “a very negative signal for all central banks, because it is a violation of the basic principles of safety of reserves.”
▪️ According to Bloomberg’s interlocutors, officials involved in the discussions are confident that the court case will prevent the transfer of funds to Ukraine, even if Russia fails to gain control of the money. The West has little chance in court, they said, and has no legal basis for seizure based on legislation passed after the freeze.
▪️ According to Sergey Glandin, a partner at BGP Litigation in Moscow who specializes in compliance and sanctions issues, Russia’s legal options depend on the actions taken and the existence of a bilateral investment protection agreement. He said Russia could appeal to the International Court of Justice in The Hague, 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 for years and a “war of confiscation” in response.
The entire article can be read at the link https://www.bloomberg.com/news/articles/2024-01-12/russia-prepares-legal-battle-to-stall-seizure-of-frozen-reserves
