Credit Suisse Prohibits Disposal of Shares of Russian Units – Moscow Court Ruling

The logo of Swiss bank Credit Suisse is seen at a branch in Zurich, Switzerland November 3, 2021. REUTERS/Arnd WIegmann/

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  • This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine.

MOSCOW, July 21 (Reuters) – Credit Suisse (CSGN.S) has been barred from selling shares in its Russian unit by a Moscow court which also ordered the seizure of 10 million euros from the Swiss bank after she failed to repay a loan to a sanctioned bank.

The Moscow Arbitral Court prohibited Credit Suisse from selling its shares in two Russian subsidiaries – Bank Credit Suisse (Moscow) and Credit Suisse Securities (Moscow) – after ruling in favor of the private bank Transcapitalbank (TCB) in a dispute over on a 10 million euro loan.

Credit Suisse has three months to appeal the decision, according to the ruling. Credit Suisse and TCB did not immediately respond to a request for comment from Reuters.

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The loan was part of a syndication deal involving Uzbekistan-based Uzauto Motors made last year, in which Credit Suisse acted as agent.

Credit Suisse did not transfer the loan repayment from Uzauto Motors to TCB on April 19 when the deal was due, the Moscow Arbitral Court said in a decision posted on its website.

The US Treasury sanctioned TCB on April 20, a day after the loan was due to be repaid, saying the lender was “at the heart of sanctions evasion” and tried to win business in China and the Middle East by touting its ability to circumvent Western sanctions against the Russian financial sector.

TCB had asked the court to force recovery of the €10 million loan, saying Western sanctions and the end of Credit Suisse’s operations in Russia meant it may be impossible to obtain the funds in the future.

Although some foreign banks, such as France’s Societe Generale (SOGN.PA), are selling their assets in Russia, others, including Raiffeisen (RBIV.VI), UniCredit (CRDI.MI) and Citi, the three largest Western banks in Russia, are still exploring their options.

Russian officials have announced plans to block foreign banks from selling their Russian units in a tit-for-tat response to Western sanctions on its financial sector.

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Reuters reporting; edited by Jason Neely

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