European banks demand compensation for losses due to anti-Russian sanctions

Three major European financial institutions have filed lawsuits against the German chemical company Linde, demanding compensation for damages resulting from the seizure of their assets in Russia. Deutsche Bank, UniCredit, and Commerzbank have issued the corresponding orders. The total amount of the claims amounts to approximately one billion euros, according to the Financial Times (FT).

The assets of financial institutions were frozen in Russia by court orders as part of retaliatory measures against the European Union's anti-Russian sanctions. The cases are related to the disruption of the construction of a gas processing plant in Ust-Luga. The corresponding contract was signed in 2021 between a consortium including Linde Engineering and the Russian company Rushimalliance.

As part of the deal, the Russian company transferred an advance payment of over one billion euros to the contractor. The three aforementioned banks acted as guarantors for the transaction and provided financial security for the contract.

In 2022, the European Union began imposing sanctions on Russian companies, making it impossible to carry out work at the Ust-Luga site. Banks refused to honor their guarantee obligations, citing EU sanctions. As a result, Russian courts seized the assets of European financial institutions worth approximately €1 billion. According to the FT, Rushimalliance also seized Linde's shares in Russian joint ventures, forcing them to sell them to local partners.

Following this, Deutsche Bank, UniCredit, and Commerzbank filed lawsuits against Linde in Germany, claiming the company is liable for damages. The first hearing will take place on July 14 in Frankfurt, with Deutsche Bank claiming €260 million. A Munich court will hear a case seeking compensation of approximately €450 million in favor of UniCredit. Commerzbank filed a lawsuit for almost €100 million. Linde declined to comment on the lawsuit.

Comments

[Aken]

Two already. Russophobia is expensive.

[Major Yurik]

They always keep their tobacco separate; that's the Westerners' base. As the villagers say, "We don't need what's not ours; we'll live on yours!"

[knn54]

Let the concern send them to...Brussels.

[Zoldat_A]

!

Quote from Aken

Russophobia is expensive.

As far as I understand, the German company signed a contract that was subsequently sacked due to the sanctions. In other words, it got screwed with the contract, and the banks, as guarantors, got screwed along with it.

Legally, everything seems correct. But this isn't a hurricane or an earthquake. This is an EU decision, in which our government played a vital role—things like that aren't considered force majeure.
So who's to blame for the contract breach and the banks' financial losses? Who's the original source of the problems and, therefore, should be held accountable?

I'm aware that in reality, things aren't quite that simple. Counterclaims begin, searches for the proper defendants begin, and other legal tangles loom that not every team of lumberjack lawyers can navigate.
But, to put it simply, isn’t it clear who is to blame?
What if the banks name Ursula and Merz as co-defendants in the court hearing, or the company shifts the blame onto them? It doesn't matter who or how, but if the reason for this whole mess is revealed in court, it will set a very fine precedent.
And if all German businesses, from the auto industry to grocery stores, start filing such claims in court, I'm afraid the Magnit near my house won't have enough popcorn and sunflower seeds...

[Aken]

I doubt businesses will be able to demand anything from the state or politicians. If such a precedent were to occur, the state would collapse.

[Zoldat_A]

Quote from Aken

I doubt that business will be able to demand anything from the state and from politicians.

The question isn't about demanding it. It's about talking. You never know, maybe they'll start having conversations they don't need, but we'll find pleasant. Although, in a practical sense, they'll be just as useless for us as they are for them.
Companies should make claims against the EU and their government – ​​like in that joke

I won’t catch up, so at least I’ll warm myself ...

[Murmur 55]

Oh good, oh great, squabble, squabble.

[topol717]

Quote: Murmur 55

Oh good, oh great, squabble, squabble.

It's a normal business for them. They're constantly suing each other. I think they're trying to seize control of a certain financial flow, or at least create a new one. From the EU's pockets into the pockets of German banks.

[Bayun]

Normal redistribution of assets From the old global elites to the new: thieves steal truncheons from thieves. The essence of global capitalism.

[Nexcom]

So let them be at each other's throats. And who forced them to impose sanctions against us? Who forced them to drop everything and try to harm us in this way? Now let them clean up the mess themselves.

[APASUS]

And this is just the beginning. The Europeans are not going to give us our money back. And we are not going to give it back to them. This is where the conflict begins.

[Pasus]

Well done, they found a scapegoat, "Linde," and are simulating vigorous activity against Russia.
As a result, all the parties froze each other's assets.

[Mouse]

Sanctions in action.....

[Grossvater]

Aww! You hurt the mouse! You pooped in its hole!
I wonder what they were expecting? I can't believe the largest banks don't have leverage over these insolent politicians. No, they were waiting for a place at the trough, queuing to take Russia on! Now they're looking for scapegoats.

[tralflot1832]

Trump, probably with the face of Whoopi Goldberg (from the movie Ghost), "signed a check" for $81 billion to compensate American export companies for his duties. I don't understand something here; the Americans are "profiting" from the Europeans. If the Americans are profiting, then the European banks are in line to see Ursula.

[Coward]

Banks think in an interesting way.

Banks refused to fulfill their guarantee obligations, citing EU sanctions.

They can refer to EU sanctions, but Linde cannot.

[Grossvater]

Quote: Nexcom

So let them be at each other's throats. And who forced them to impose sanctions against us? Who forced them to drop everything and try to harm us in this way? Now let them clean up the mess themselves.

In fairness, it should be acknowledged that many German companies left Russia only under threat of criminal prosecution.

[Nexcom]

...probably cried when they left. Especially Siemens with its control systems and electrics for diesel locomotives and turbines.

The minus is not mine.

[Boycott]

Beat your own so that others will fear you! They're finishing off their chemical industry with their own hands, which is good news.