British court orders Gazprom subsidiary to stop lawsuit against UniCredit for 450 million euros – Business

The UK High Court has ordered a subsidiary of Russian energy giant Gazprom to stop suing Italian bank UniCredit in Russia over an aborted gas project, Reuters reports.

RusKhimAlyans launched a wave of lawsuits in Russian courts after Russia’s invasion of Ukraine and subsequent Western sanctions halted work on a liquefied natural gas (LNG) plant at the Baltic port of Ust-Luga in 2022.

The company, which is 50 percent owned by Gazprom, began suing UniCredit for about 450 million euros in August 2023 after the Italian bank refused to pay bank guarantees related to the project, citing Western sanctions.

However, UniCredit filed a counter-suit in London, which prevented RusChemAlliance from pursuing its case in Russia, on the grounds that the parties’ contract said they would submit all disputes to arbitration in France.

RusChemAlliance tried to overturn that decision in the UK High Court last week, but the company’s appeal was rejected, Judge Robert Reid announced.

RusChemAlliance and UniCredit did not immediately respond to Reuters requests for comment.

Tuesday’s decision comes days after Reuters reported that the European Central Bank was poised to order UniCredit to limit its business with Russia as European regulators step up pressure on Western lenders over its Russian business.

The large American proxy consulting company Glass, Lewis & Co. also warned earlier this month that UniCredit’s continued presence in Russia exposed the bank to reputational risks.

Lawyers representing UniCredit said in court documents for last week’s hearing that the Italian lender faces “direct commercial consequences” if the RusChemAlliance case in Russia continues.

“If the English court cannot act, RusChemAlliance will soon receive a final decision on the merits of the requested approximately 450 million euros and then seek enforcement against UniCredit’s assets in Russia,” said UniCredit lawyer Steven Hausman.

Working on the publication: Yavor Rimski

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