Russia's central bank says it will sue European banks in Russian court over frozen assets

MOSCOW, Dec 18 (Reuters) - Russia's central bank said on Thursday it will extend its legal action beyond its lawsuit against Belgium-based depository Euroclear and sue European banks in a Russian court over attempts to use frozen Russian assets to help Ukraine.

European Union leaders will decide at a summit on Thursday whether to use frozen Russian assets to provide billions of euros in loans to Ukraine to keep its war effort afloat, in a move seen as a critical test of the bloc's unity.

"In line with its previously stated position on protecting its interests, the Bank of Russia announces that it will seek compensation from European banks in a Russian commercial court for losses arising from the unlawful blocking and use of its assets, in an amount corresponding to the illegally withheld assets and lost profits," the Russian central bank said in a statement.

It did not specify which European banks it plans to target, but said in a separate statement to Reuters that it will go after "institutions that are unlawfully retaining and blocking the Bank of Russia's ability to dispose of its assets."