A Russian court has ruled in favor of Sberbank, ordering Swiss raw materials company Glencore to pay the bank in investments in an oil company and an aluminum manufacturer. The decision comes after Sberbank filed a lawsuit against Glencore for unpaid fuel deliveries from their subsidiary.
Glencore’s head received an award from Vladimir Putin in 2017, but now the state-controlled Sberbank is suing them for outstanding debts. This is the second lawsuit filed by Sberbank against Glencore, with the court ordering them to pay 11.4 billion rubles in damages.
Sberbank is seeking payment in the form of shares, as Glencore holds shares in Russian companies like Rosneft and EN+, which includes Rusal. The case highlights the challenges faced by Western companies looking to exit investments in Russia amid sanctions and political unrest. Glencore had previously announced they would not enter into new contracts to purchase Russian raw materials but would fulfill existing obligations.
Other Western companies have also faced difficulties in selling their interests in Russia, with some subsidiaries placed under state administration by the Russian government. Glencore’s holdings in Rosneft and Rusal are currently worth 700 million francs, and they may be looking to sell these shares while maintaining their market value. The company did not comment on the court decision but may be exploring options to exit their investments in the current environment.
