The court's decision, pertaining to an unresolved lawsuit regarding a discontinued gas project involving UniCredit, covers approximately EUR 462.7 million (USD 503 million) in assets, including securities, real estate, and accounts, as well as full ownership of UniCredit Leasing and UniCredit Garant.
UniCredit Leasing and UniCredit Garant operate as subsidiaries of AO UniCredit Bank, the Russian arm of the Italian banking group. AO UniCredit Bank reported assets totaling EUR 8.67 billion by the conclusion of 2023, reflecting a decrease from EUR 10.16 billion in the preceding year.
UniCredit responded to the court's decision, asserting that the seizure affects only a portion of its Russian subsidiary's assets, rather than the entirety of the subsidiary. The bank stated that it is currently reviewing further details regarding the matter.
As one of Europe's largest lenders in Russia, UniCredit faces increasing pressure from euro zone banking regulators to scale back its operations in the region. The bank's exposure to risks associated with conducting business in Russia has been underscored following the imposition of Western sanctions in response to the conflict in Ukraine.
In its 2023 report, UniCredit acknowledged being embroiled in legal proceedings initiated by a Russian energy company in a St. Petersburg court. The lawsuit revolves around guarantee claims amounting to EUR 444 million, although the identity of the suing entity was not disclosed in UniCredit's annual report.
UniCredit's involvement in the gas project stemmed from its role as a guarantor lender in a contract for the construction of a gas processing plant in Russia, in partnership with Germany's Linde. The project was terminated due to Western sanctions, resulting in legal disputes between the involved parties.
Following the termination of the project, RusChemAlliance, a joint venture partially owned by Russian gas giant Gazprom, had made a significant advance payment on the contract. UniCredit, as part of the guarantee scheme, issued bonds in favor of RusChem. The dispute regarding these bonds, governed by English law and subject to arbitration in Paris, led to legal proceedings in both UK and Russian courts.
Despite a directive from the UK's Supreme Court instructing RusChem to cease legal action against UniCredit in Russia, the Russian court rejected UniCredit's jurisdictional defense. Consequently, a hearing is scheduled for the second quarter regarding RusChem's claims against UniCredit.
RusChem, dissatisfied with UniCredit's inability to fulfill payment claims due to Western sanctions, has pursued legal action seeking recovery of 448 million euros under the bonds, including penalty charges. Additionally, RusChem has initiated lawsuits against other financial institutions, such as Deutsche Bank and Commerzbank, in relation to the abandoned Linde plant project, as indicated by Russian court documents.
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