Russian Court Freezes Assets of Two German Banks in Gas Project Dispute
- A Russian court in St. Petersburg has ordered the seizing of assets of Deutsche Bank and Commerzbank in Russia.
- The asset freeze comes amid a gas project dispute between Russia and the two German banks.
- The decision may have significant legal and financial implications for the banks involved.
A court in St. Petersburg, Russia, has ordered the taking of assets from Deutsche Bank and Commerzbank, two German banks, in response to a lawsuit about a planned gas terminal in the Baltic Sea. The banks had agreed to support the construction of a gas plant, but the project was canceled due to Western sanctions, and the banks withdrew their support. The cancellation was requested by RusChemAlliance, a subsidiary of Russian gas company Gazprom. RusChemAlliance had paid money in advance to the German company Linde for the plant's construction. Now, they are seeking 238.61 million euros from Deutsche Bank and 94.92 million euros from Commerzbank. Deutsche Bank has set aside about 260 million euros to cover potential losses from this situation. They are now evaluating how this lawsuit will affect their operations in Russia and how the Russian courts will handle the claim. This legal action stems from the sanctions imposed by Western countries on Russia following its involvement in the conflict in Ukraine two years ago.