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EU dismisses Russia’s lawsuit against Euroclear as ‘speculative’

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EU dismisses Russia’s lawsuit against Euroclear as ‘speculative’

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The European Commission has dismissed as “speculative” and groundless a lawsuit launched by the Russian Central Bank against Euroclear, the Brussels-based central securities depository that holds €185 billion in immobilised assets.

In a short statement published on Friday morning, the Russian Central Bank announced the start of legal proceedings for the “recovery of damages” and blamed Euroclear for preventing the release of the assets, which are subject to EU law.

The lawsuit was submitted to the Arbitration Court in Moscow.

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The development comes with the EU still hammering out a plan to channel Russia’s sovereign assets into a zero-interest reparations loan to Ukraine, a process with Euroclear at its centre. EU leaders are meant to make a final decision when they meet on 18 December.

“Our proposal is legally robust and fully in line with EU and international law. The assets are not seized, and the principle of sovereign immunity is respected,” Valdis Dombrovskis, the European Commissioner for the Economy, said on Friday afternoon.

“We kind of expect that Russia will continue to launch speculative legal proceedings to prevent the EU from upholding international law and to pursue the legal obligation for Russia to compensate Ukraine for the damages it has caused.”

According to Dombrovskis, all European institutions that have Russian assets, from Euroclear to private banks, will be “fully protected” against Moscow’s retaliation. The EU has controlled €210 billion in assets of the Russian Central Bank since February 2022.

The sanctions regime already allows Euroclear to “offset” any potential loss, he added.

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For example, if a Russian court orders the seizure of the €17 billion that Euroclear has on Russian soil, Euroclear will be allowed offset the loss by tapping into the €30 billion that its Russian counterpart, the National Settlement Depository, has stored within the EU.

Additionally, the reparations loan, if approved, will introduce a new mechanism to deal with state-to-state disputes. If Russia seizes the sovereign assets of Belgium in retaliation, Belgium will be allowed to “offset” the lossagainst the €210 billion, while Russia will not recover the amount it has seized when the assets are freed.

The Belgian factor

The legal safeguards are meant to allay the concerns of Belgium, which remains the chief opponent of the reparations loan. Belgian Prime Minister Bart De Wever has repeatedly warned of the risk a successful legal challenge could pose.

“We put forward a proposal. We are confident in its legality and its court-proof character,” a Commission spokesperson said.

Euroclear, which declined to comment, has previously criticised the reparations loan as “very fragile”, legally risky and overtly experimental.

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The lawsuit comes a day after EU countries agreed to trigger an emergency clause to immobilise the Russian Central Bank assets for the foreseeable future.

Under the new law, the €210 billion will be released only when Russia’s actions “have objectively ceased to pose substantial risks” for the European economy and Moscow has paid reparations to Kyiv “without economic and financial consequences” for the bloc – a high bar that is unlikely to be cleared any time soon, if ever.

The indefinite immobilisation is meant to further placate Belgium and Euroclear in order to facilitate the approval of the reparations loan next week.

In a separate statement, the Russian Central Bank said it “reserves the right, without further notice, to apply all available remedies and protections if the proposed initiatives of the European Union are upheld or implemented”.

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Head of Ukraine’s security service Maliuk to be replaced, Zelenskiy says

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Head of Ukraine’s security service Maliuk to be replaced, Zelenskiy says

KYIV, Jan 5 (Reuters) – Ukrainian President Volodymyr Zelenskiy said on Monday that he planned to replace the head of the country’s SBU security service, Vasyl Maliuk, as part of a wider reshuffle that has also seen a new presidential chief of staff.

Maliuk was appointed SBU chief in February 2023, having already served as acting head for months before.

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During his tenure, the service has carried out a number of high-profile operations, including an audacious drone attack on dozens of Russian strategic bombers stationed thousands of kilometers from Ukraine.

The SBU said he also oversaw a strike on a Russian submarine and three attacks on the bridge connecting Russia to the occupied Crimean peninsula, a crucial logistical node for Moscow.

Maliuk has been praised by analysts for improving the SBU’s effectiveness, after his predecessor Ivan Bakanov was dismissed by Zelenskiy in July 2022 for failing to root out Russian spies.

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Zelenskiy said on X that he had asked Maliuk instead to focus more on combat operations, adding: “There must be more Ukrainian asymmetric operations against the occupier and the Russian state, and more solid results in eliminating the enemy.”

The move comes days after Zelenskiy announced military intelligence chief Kyrylo Budanov would become his new chief of staff, and that he would seek to appoint new defence and energy ministers.

Reporting by Yuliia Dysa and Max Hunder
Editing by Gareth Jones and Toby Chopra

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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Mexican president rejects US sending troops to her country: ‘I don’t believe in an invasion’

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Mexican president rejects US sending troops to her country: ‘I don’t believe in an invasion’

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Mexican President Claudia Sheinbaum on Monday condemned what she described as U.S. intervention in Venezuela and rejected the idea of American troops entering Mexico, reaffirming her government’s commitment to national sovereignty.

“We categorically reject intervention in the internal affairs of other countries,” Sheinbaum said at a press conference in Mexico City, according to an official transcript of the speech released by her office.

“The history of Latin America is clear and forceful, the intervention has never brought democracy, it has never generated well-being or lasting stability. Only people can build their own future, decide their path, exercise sovereignty over their natural resources and freely define their form of government,” she said.

The U.S. military on Saturday carried out an operation in Caracas, extracting former Venezuelan leader Nicolás Maduro and his wife, Cilia Flores, from their compound.

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Mexican President Claudia Sheinbaum answers questions during her morning press conference at Palacio Nacional in Mexico City on Jan. 5, 2026. (Raquel Cunha/Reuters)

Maduro and Flores were boarded onto USS Iwo Jima and flown to New York to face federal charges, with their arraignment taking place on Monday in Manhattan.

Maduro is charged with four counts: narco-terrorism conspiracy, cocaine importation conspiracy, possession of machine-guns and destructive devices, and conspiracy to possess machine-guns and destructive devices.

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His wife is charged with three counts: cocaine importation conspiracy, possession of machine-guns and destructive devices, and conspiracy to possess machine-guns and destructive devices.

Venezuelan President Nicolás Maduro and his wife Cilia Flores are seen in handcuffs after landing at a Manhattan helipad, escorted by heavily armed Federal agents as they make their way into an armored car en route to a Federal courthouse in Manhattan on Jan. 5, 2026. (TheImageDirect.com)

Sheinbaum said that following the capture of Venezuela’s leader and his wife, and amid warnings from President Donald Trump that Mexico must “get their act together,” Mexican sovereignty and self-determination remain non-negotiable.

Trump told reporters aboard Air Force One that he thinks Sheinbaum is a “terrific person,” but the cartels are “running Mexico.”

“We’re going to have to do something. We’d love Mexico to do it, they’re capable of doing it, but unfortunately the cartels are very strong in Mexico,” Trump said.

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Sheinbaum said her country is cooperating with the United States to help fight against drug trafficking, organized crime and the flow of fentanyl.

President Donald Trump speaks at his Mar-a-Lago club, Saturday, Jan. 3, 2026, in Palm Beach, Fla, as Secretary of State Marco Rubio and War Secretary Pete Hegseth listen. (AP Photo/Alex Brandon)

“I don’t believe in an invasion. I don’t even think it’s something they’re taking very seriously,” Sheinbaum told reporters in Spanish when asked about a potential U.S. intervention, according to Reuters’ translation of her remarks.

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She said Trump has repeatedly insisted during their phone conversations that the U.S. Army be allowed to enter Mexico.

“We have said no very firmly — first because we defend our sovereignty, and second because it is not necessary,” Sheinbaum told reporters.

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Free civic space in France, Italy and Germany under threat, study says

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Free civic space in France, Italy and Germany under threat, study says

France, Germany and Italy are the three European Union countries experiencing a worsening environment for civil society, according to a report by CIVICUS, the global alliance of civil society organisations and activists.

All three member states were downgraded from “narrowed” to “obstructed” — the third-lowest of five possible categories.

The annual report tracks the state of freedom of association, peaceful assembly and expression in 198 countries and territories, rating them as open, narrowed, obstructed, repressed or closed.

Across Europe, the most frequently reported violations include the detention of protesters, disruption of demonstrations, attacks on journalists, use of excessive force and public vilification.

“Far fewer people in Europe can exercise fundamental freedoms without significant barriers, largely due to intensifying crackdowns on protests and human rights defenders in some of Europe’s largest democracies,” Tara Petrović, Europe and Central Asia researcher for the CIVICUS Monitor, said.

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“European leaders, particularly within the EU, must push back on these trends so that the continent remains at the forefront of protecting rights and civic space.”

France’s downgrade reflects an accumulation of growing restrictions on peaceful protests and freedom of expression, alongside the misuse of laws to dissolve NGOs and intimidate activists in recent years.

Meanwhile, Germany’s civic space deterioration has occurred “at an alarming rate”, according to the report.

The drop is due to repression of those demonstrating for climate justice, migrant rights and against austerity measures.

“German authorities have paired political pressure with heavy-handed policing to suppress free expression, from storming a relocated event with UN Special Rapporteur Francesca Albanese to monitoring students who livestreamed it,” the report noted.

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The situation for civil society in Italy has worsened following new laws passed in 2025 that introduced dozens of new criminal offences, including harsher penalties for peaceful protests.

In Europe, Georgia and Serbia moved to the “repressed” category, the second-worst civic space rating, while Switzerland changed to “narrowed”.

This shift is largely due to intensifying crackdowns on human rights defenders and protests in some of Europe’s largest democracies.

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