MOSCOW: Russia’s central bank said on Friday that any attempt by the European Union to use its assets would be unlawful, warning that it would take all necessary steps to defend its interests.

In a separate statement, the bank confirmed it has filed a lawsuit in a Moscow court against Brussels-based financial services firm Euroclear, which holds a large portion of the Russian central bank’s frozen assets. The bank said Euroclear’s actions have caused financial damage by restricting its ability to manage and dispose of its funds and securities.

“Any direct or indirect use of the Bank of Russia’s assets, or any other form of unauthorised use, is illegal and contrary to international law, including a violation of the principle of sovereign immunity of state assets,” the central bank said.

Euroclear did not immediately respond to requests for comment.

The central bank referred to a European Commission statement issued on Dec 3 outlining two proposals to support Ukraine’s financing needs in 2026 and 2027. Under one of the proposals, the Commission would be allowed to borrow cash balances from EU financial institutions holding frozen Russian central bank assets in order to issue a reparations loan to Ukraine.

Russian officials have repeatedly warned that any move to repurpose the assets would trigger what they described as the “harshest response”.

Meanwhile, European Union governments are expected to agree on Friday to extend the freeze on Russian central bank assets held in Europe for an indefinite period. The move would remove the need for a six-monthly vote to renew the asset freeze, according to EU diplomats.

The Bank of Russia said it would challenge the implementation of such measures through national courts, foreign judicial authorities, international organisations, arbitration tribunals and other international legal bodies. It added that any judicial decisions obtained would be enforced in the territories of United Nations member states.