Russia's Central Bank said on Friday that the European Union's plans to use its assets are "illegal" and that it reserves the right to use all available means to protect its interests.

In a statement, the Central Bank said it was suing Brussels-based financial institution Euroclear - which holds many of the Russian assets - in a Moscow court over what it described as "harmful actions".

“The 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 a violation of the principles of sovereign immunity of assets,” the bank said. It referred to a European Commission press release published on December 3, which outlined two solutions to support Ukraine’s financial needs in 2026 and 2027.

Under one of these solutions, the Commission would be able to borrow cash balances from EU financial institutions holding frozen assets of the Russian Central Bank to issue a reparations loan to Ukraine. Russian officials have repeatedly said such a move would be met with “the strongest possible response.” European Union governments aim to reach agreement on Friday to freeze the assets of the Russian Central Bank, which are blocked in Europe, for as long as necessary, replacing the need for a six-monthly vote on their freezing, EU diplomats said.

The Central Bank of Russia said that the implementation of these plans will be challenged in "national courts, judicial authorities of foreign states and international organizations, arbitration tribunals and other international judicial instances, followed by the implementation of court decisions in the territories of UN member states."/REL