A Swiss raw materials company, Glencore, has been ordered by a Russian court to pay Sberbank in the form of investments in an oil company and an aluminum manufacturer. This comes after a dispute over unpaid deliveries of fuel from Sberbank’s Swiss raw materials trading subsidiary to Glencore, which was unable to be completed due to Western sanctions.
The arbitration tribunal has ordered Glencore to pay 11.4 billion rubles to Sberbank, equivalent to around 110 million francs. This is the second lawsuit filed by the major Russian bank against the Swiss group, with a similar amount being ordered to be paid last year as well. Sberbank is seeking payment in the form of shares from Glencore’s remaining holdings in Russian raw materials companies.
Despite this, the Swiss company is still working to meet its legal obligations under existing contracts while adhering to sanctions. The case highlights the challenges faced by Western companies looking to sell interests in Russia amid geopolitical tensions and sanctions. It also raises concerns for other Western companies, such as energy companies and consumer goods companies, that are looking to exit their investments in Russia.
Glencore continues to hold stakes in Russian companies such as Rosneft and EN+, which includes the aluminum group Rusal. Sberbank had attempted to freeze these shares previously, but the court rejected their request. The situation underscores the complex dynamics of international business in a changing geopolitical landscape and serves as a reminder that businesses must navigate these challenges carefully when operating globally.
