Russian court mandates confiscation of Deutsche Bank's assets amid legal dispute
Date
5/19/2024 4:42:18 AM
(MENAFN) A Russian court has mandated the confiscation of Deutsche Bank's assets, accounts, and property within Russia as part of an ongoing lawsuit involving the German financial institution. According to court documents, the dispute centers around Deutsche Bank's role as a guarantor lender for a gas processing plant project in Russia. This project, initially contracted with the German company Linde, was terminated due to the imposition of Western sanctions.
The lawsuit was initiated by Roskem Alliance, a St. Petersburg-based joint venture in which the Russian gas giant Gazprom holds a 50 percent stake. Roskem Alliance is responsible for managing the gas processing project. The St. Petersburg Arbitration Court has barred Deutsche Bank from selling its entire stake in the authorized capital of its Russian subsidiary, as well as its Deutsche Bank Technology Center.
In a detailed ruling, the court ordered the seizure of up to 238.6 million euros (USD259 million) in securities, real estate, and bank accounts belonging to Deutsche Bank, alongside the confiscation of its Russian subsidiary and the Technology Center. Deutsche Bank's headquarters in Frankfurt acknowledged the situation, noting that it had already allocated approximately USD260 million in anticipation of this legal challenge.
The bank's statement highlighted the need to monitor how Russian courts would implement the confiscation order and to evaluate the immediate operational implications for Deutsche Bank's activities in Russia. This legal action represents a significant escalation in the financial and geopolitical tensions stemming from the broader conflict involving Western sanctions and Russian economic interests.
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