Russian Court Orders Italy’s UniCredit to Pay $480M for Aborted Gas Project
UniCredit was one of the guarantor lenders under a contract for the construction of a gas processing plant in Russia with Germany’s Linde, which was terminated due to Western sanctions against Moscow over the conflict in Ukraine.
“The claim is satisfied in full,” the St Petersburg Arbitration Court said in a filing.
UniCredit declined to comment.
The court had ruled in mid May that 462.7 million euros in securities, real estate and accounts belonging to UniCredit, as well as 100% of shares in UniCredit Leasing and UniCredit Garant, be seized.
UniCredit Leasing and UniCredit Garant are subsidiaries of AO UniCredit Bank, the Italian group’s Russian arm. UniCredit said earlier in May that the seizure affected only a fraction of the Russian unit’s assets, not the entire subsidiary.
Following the asset seizure, UniCredit’s Russian unit agreed with RusChemAlliance for UniCredit to pledge Russian OFZ treasury bond holdings with a market value of around 50 billion roubles ($574 million) instead.
When the gas project was halted, RusChemAlliance had made a 2 billion euro advance payment on the 10 billion euro contract, according to Britain’s Supreme Court website.
UniCredit had issued part of the guarantee package in favor of RusChem on behalf of Linde.
($1 = 0.9348 euros)
($1 = 87.1000 roubles)
(Reporting by Fabrichnaya and Marrow; additional reporting by Elisa Anzolin in Milan and Louise Heavens)
- Workers Sue Disney, Say They Were Wrongly Induced to Move to Florida
- Let Good Adjusters, Not Expensive Lawyers, Make the Difference on Claims, CEO Says
- BlackSuit Cybercrime Gang Blamed in CDK Hack That Roiled Car Dealers
- Hundreds of Thousands in Southeast Now in Flood Zones With New Maps
- COVID-19 Can Be Occupational Disease, Colorado Court Says in Worker Death Case
- The Problem(s) With Hail Claims, Part 1: A Cautionary Tale for Insureds and Insurers
- Directors and Officers Who Fail to Respond to Climate Change May Face Claims
- Wife of Man Who Died by Hot Tub Electrocution at Mexican Resort Files Wrongful Death Suit