Russia confiscated more than $1 billion in assets of German businesses

The assets of industrial gas company Linde in Russia will be seized, after it stopped operations there because of the conflict in Ukraine.

The Arbitration Court of St. Petersburg and Leningrad Region ruled on February 23 that the assets of the German industrial gas company Linde there will be confiscated, due to breach of contract to build a gas processing plant in Russia in 2022.

In July 2021, RusChemAlliance (RCE) - a joint venture of Russian gas companies RusGazDobycha and Gazprom - signed a contract with a consortium of Linde (Germany) and Renaissance Heavy Industries (Türkiye). The job of the two foreign companies is to design, purchase raw materials and build a gas processing plant in the Leningrad region.

However, construction was halted after the West imposed sanctions on Russia in 2022 over the war in Ukraine. Linde explained that their activities violated European Union (EU) sanctions.

RCA then filed a lawsuit against Linde, seeking $1 billion in damages. Linde received an advance payment from RCA in 2021.

The Russian court ruled that the work under the contract did not violate sanctions. It ruled that $1 billion in Linde’s Russian assets would be seized to cover the loss of the contract. This included Linde’s stakes in several Russian companies. The court ordered the assets of the company to be frozen in late 2022.

The latest developments show that the international business environment is becoming increasingly complicated due to sanctions. The EU and the US this week continuously tightened sanctions on Russia as the conflict in Ukraine entered its third year.

On February 21, the European Union (EU) continued to pass the 13th package of sanctions against Russia. According to the new package of sanctions, nearly 200 entities and individuals accused of assisting Russia in purchasing weapons or being involved in the movement of Ukrainian children will be banned from doing business or entering EU member countries. These individuals and companies also face the risk of having their assets frozen.

The US also said on February 23 that it would impose new export restrictions on nearly 100 entities accused of supporting Russia, and take measures to further reduce Russia's energy revenues. Among them are sanctions on the state-owned shipping company Sovcomflot and 14 of its oil tankers. Russia's payment system Mir is also in the US Treasury 's sights.

Ha Thu (according to RT)

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