Court bans Credit Suisse and UBS from disposing of shares of Russian subsidiaries – Kommersant

Moscow Arbitration Court banned Swiss banks Credit Suisse and UBS to dispose of stakes and shares in their Russian subsidiaries. The decision was made on the basis of a lawsuit filed by the Russian bank Zenith against Swiss financial institutions.

In a decision dated August 11, 2023, which Interfax drew attention to, the Moscow Arbitration Court, as an interim measure in the suit of Zenith, prohibited Credit Suisse AG from disposing of shares in Credit Suisse Bank (Moscow) JSC and Credit Suisse Securities LLC (Moscow)”. The Swiss bank UBS AG, as the successor of Credit Suisse AG, was banned by the court from disposing of shares in the subsidiary UBS Bank LLC. The court ruling notes that Zenit sees the risk of ending the activities of banks in Russia.

At the same time, Zenith’s demand to seize Russian funds of banks for $13.6 million was rejected, since the plaintiff could not substantiate the need for this measure to the court.

In his lawsuit, Zenith asks declare Credit Suisse AG bankrupt due to the failure of the credit institution to fulfill its obligations. The reason for filing the application was the debt of Credit Suisse to Zenit in the amount of $ 13.6 million, the next hearing in the case is scheduled for September 14. In October 2021, Zenit Bank signed an agreement on a syndicated loan to the borrower Intergrain SA, whose loan agent was the London branch of the Swiss bank. Since February 2022, Zenit Bank has been under US and UK sanctions, which is why it cannot receive payments from the borrower on the loan. Credit Suisse has notified the Russian bank that the money is not being paid out due to being included in the sanctions lists. Zenit Bank believes that the actions of the Swiss financial organization are illegal and violate its rights.

Alexander Kislov