In recent developments, a Russian court has ruled in favor of Sberbank and ordered Swiss raw materials company Glencore to pay the bank in the form of investments in an oil company and an aluminum manufacturer. This decision comes after a dispute over unpaid deliveries of fuel from Sberbank’s Swiss raw materials trading subsidiary to Glencore, which was hindered by Western sanctions.
The arbitration tribunal had previously ordered Glencore to pay 11.4 billion rubles, equivalent to around 110 million francs, to Sberbank. 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 holding stakes in Russian companies such as Rosneft and EN+, which includes the aluminum group Rusal, Glencore continues to face challenges due to geopolitical tensions and sanctions. The case highlights the difficulties faced by Western companies looking to sell interests in Russia amid these challenges.
Glencore is not alone in its struggles to divest from its Russian holdings. Other Western companies, including energy companies and consumer goods companies, are also finding it difficult to exit their investments in Russia amidst ongoing tensions. However, despite these challenges, Glencore remains committed to meeting its legal obligations under existing contracts while adhering to sanctions.
Overall, the court decision and ongoing challenges faced by Glencore and other Western companies operating in Russia underscore the complex dynamics of international business in a changing geopolitical landscape. As tensions continue to escalate between Russia and the West, businesses must navigate these challenges carefully while staying compliant with all relevant laws and regulations.