MOSCOW – A Russian court has ordered the seizure of substantial assets belonging to Deutsche Bank and UniCredit, marking a significant escalation in financial tensions between Russia and Western nations. The court rulings, dated May 16, come as part of broader retaliatory measures by Moscow following extensive sanctions imposed by Western countries in response to Russia’s military actions in Ukraine.
According to court documents, Deutsche Bank’s assets valued at 239 million euros ($260 million) and UniCredit’s assets worth approximately 463 million euros have been seized. Additionally, Commerzbank has had assets worth 93.7 million euros ($101.85 million) seized, including securities and its central Moscow building. The seizures are in response to legal actions initiated by RusChemAlliance, a joint venture half-owned by Russian energy giant Gazprom, which had been involved in a major gas processing and liquefaction project with the German company Linde. Linde withdrew from the project due to the conflict in Ukraine.
RusChemAlliance filed lawsuits against Deutsche Bank and UniCredit, who were guarantors for the project. This legal move follows a warning from the Kremlin that it would confiscate Western assets if Group of Seven (G7) nations proceeded with plans to seize $300 billion in frozen Russian central-bank assets. Kremlin spokesman Dmitry Peskov condemned such potential actions by the West, stating they would violate international law and destabilize the global financial system.
In response to the court’s decisions, Deutsche Bank has stated it will assess the operational impact in Russia, while UniCredit has acknowledged the ruling and is currently reviewing the situation. UniCredit, which had significant exposure to Russia through its local subsidiary, has been reducing its Russian business and capital exposure since the conflict began. CEO Andrea Orcel mentioned that while the bank seeks to exit Russia, simply abandoning assets worth billions would not align with the spirit of Western sanctions.
These seizures underscore the heightened economic and legal battles emerging from the geopolitical strife over Ukraine. As Western financial institutions continue to withdraw from Russia, the Kremlin’s measures reflect a broader strategy to counteract Western sanctions and assert control over foreign investments within its borders. The ongoing financial tit-for-tat poses risks not only to the involved institutions but also to the broader global economic stability.
Commerzbank has yet to issue a statement regarding the court’s ruling. As the situation develops, the global financial community watches closely, aware of the potential repercussions for international law and economic relations.
This latest development emphasizes the complex and intertwined nature of global finance and geopolitics, highlighting the substantial impacts of the Ukraine conflict beyond the immediate military engagements.