Linde halted the project in May 2022, reacting to the European Union’s sanctions against Russia. Soon after, a financial domino effect ensued. RusChem terminated the contract, demanding a colossal refund from Linde, which was unfulfilled. In 2023, the tables turned on Deutsche Bank as RusChem sought €238 million based on their guarantee agreement. Deutsche Bank, however, countered, saying sanctions barred them from processing the payment.
Deutsche Bank Gazprom Claim : Legal Chess in Russia and Paris
In a game of legal tit-for-tat, RusChem initiated legal action in Russia in July. Almost synchronously, Deutsche Bank set the wheels in motion for arbitration proceedings in Paris. The bank aimed to thwart the Russia proceedings, arguing a breach of their initial agreement to arbitrate in France.
This case not only underscores the complexities of international business agreements but also unveils the intricate dance between national legal systems. As Justice Nugee highlighted, while a French court might not have the instruments for an anti-suit injunction, it would recognize a court that does, provided international public policy isn’t breached.
A Larger Picture: Sanctions and Business Quandaries
This entanglement between Deutsche Bank and RusChemAlliance is a mere chapter in the larger narrative of businesses grappling with sanctions on Russia. For instance, the Dutch lender ING Bank NV is embroiled in a €212 million bond spat with the Italian industrial giant, Tecnimont, involving Russian fertilizer producer EuroChem.
