Russia seizes Deutsche Bank properties
Russia is responding to the sanctions from the West, and now Deutsche Bank is involved. The issue involves allegations surrounding a canceled LNG terminal construction project. A Gazprom subsidiary is seeking almost €240 million. A court has taken action by confiscating securities and money.
A Russian court has ordered the confiscation of Deutsche Bank assets in Russia, according to the Russian news agency Tass. The court in St. Petersburg made this decision on behalf of RusChimAllianz, a Gazprom subsidiary that is pursuing claims against Deutsche Bank for €238.6 million. The assets were originally held as securities belonging to Deutsche Bank and other companies it has a stake in, as well as in the form of real estate and money in accounts. This represents only a portion of the bank's total assets in Russia.
Deutsche Bank has stated that it has set aside €260 million in provisions for this situation. However, this amount is fully covered by an agreement with a customer providing compensation. "It remains to be seen how this decision will be implemented by the Russian courts and what consequences this will have for our operations in Russia," the bank said.
The court has also frozen bank accounts and assets of the Italian bank Unicredit in Russia. Other lenders have also been affected. The reason for this is the failure to build the terminal due to Western sanctions that the banks had helped to guarantee. RusChimAllianz is suing Unicredit for €444 million and has requested that assets worth €463 million be frozen. Unicredit is the largest foreign bank still operating in Russia after Raiffeisenbank and is among the 20 largest banks in the country in terms of balance sheet assets.
Billions Lost in Russia
RusChimAllianz had signed a contract in 2021 with the German industrial group Linde and construction company Renaissance Heavy Industries to create the terminal. RusChimAllianz reportedly paid Linde an advance for this. After Kremlin leader Vladimir Putin launched a war of aggression against Ukraine, the West imposed sanctions. Linde reportedly informed its client that the construction project had been halted.
The banks that acted as guarantors for the deal also withdrew their guarantees due to the sanctions. In addition to Deutsche Bank and Unicredit, Commerzbank, Bayerische Landesbank, and Landesbank Baden-Württemberg were also sued in the St. Petersburg arbitration court. While Unicredit has significant operations in Russia, these companies did not have major branches in the country. German companies have suffered enormous losses in Russia due to the sanctions.
Russia is taking more and more aggressive steps against sanctions imposed by Western countries due to their war against Ukraine. Many companies have had their assets seized or confiscated, and new managers have been appointed at Russian subsidiaries. Companies that leave Russia are forced to sell their businesses to Russian companies, sometimes at significant discounts. Most of the time, only a symbolic rouble is paid.
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Source: www.ntv.de
