Bank of Russia embarks on legal battle to fight for its frozen reserves

Bank of Russia embarks on legal battle to fight for its frozen reserves, The Bank of Russia will challenge the block
placed on its gold and foreign exchange reser-ves and is working on lawsuits,
Governor of the Bank of Russ’ia Elvira Nabiullina said on Tuesday.

Bank of Russia embarks on legal battle to fight for its frozen reserves

“This freezing of gold and foreign exchange reser-ves was unprecedented, so we
are going to work on legal claims, and we are getting ready to put them
forward. This block on the gold and foreign exchange reser-ves of such a large
country is unprecedented on a global scale,” she said, emphasizing that the
regulator will fight the West’s infringement against Russ’ia’s assets.

Nabiullina noted that due to the freezing of part of the reserves, additional
currency regulations had to be introduced.

“We have introduced these currency regulations. I know that many enterprises
also complained a lot in terms of foreign economic activity, when it was
difficult to pay. But it was a forced measure. If we had these gold and
foreign exchange reser-ves in possession, and had this part not been frozen,
there would have been no need for such draconian measures on the movement of
capital,” she explained.

 

Bank of Russia embarks on legal battle to fight for its frozen reserves

 

Bank of Russia embarks on legal battle to fight for its frozen reserves

 

At the end of February, the EU decided to prohibit transactions related to
the management of the reser-ves and assets of the Bank of Russia, including
transactions with any legal entity, or legal entities or bodies acting on
behalf of or at the direction of the Bank of Russia.

 

Bank of Russia embarks on legal battle to fight for its frozen reserves
Bank of Russia embarks on legal battle to fight for its frozen reserves

 

Nonetheless, the EU authorities may authorize transactions, provided that
they are strictly necessary to ensure the financial stability of the
continent-wide bloc as a whole or a separate EU member state.

Earlier, the foreign ministers of 27 EU countries approved a ban on all
transactions with the Bank of Russ’ia and froze its assets.

Russian-owned Amsterdam Trade Bank collapses,

A Dutch court on Friday declared the Russ’ia-owned, Dutch-registered Amsterdam Trade Bank bankrupt after it was caught up in Ukraine-related sanctions.

Amsterdam’s district court made the ruling on the subsidiary of Russ’ia’s Alfa Bank in a decision confirmed by the Dutch central bank.

In a statement on its website the central bank said customers holding deposits with ATB would be covered up to a maximum of 100,000 euros ($108,000) under the Netherlands’ deposit guarantee system.

 

Bank of Russia embarks on legal battle to fight for its frozen reserves

 

   The central bank administers the scheme on behalf of the Dutch government, adding ATB, founded in 1994, had some 23,000 customers.

The bankrupt bank had recently condemned the Russ’ian invasion of Ukraine while stressing its business focus is European SMEs with funds from Dutch and German savers.

In a statement at the time it said as a regulated Dutch (European) bank, it acted independently of shareholders and complied with all sanctions against Russia.

Washington on April 6 unveiled tough sanctions on Russian banks including Sberbank and Alfa Bank, the latter being Russia’s top private lender, freezing all their assets linked to the US financial system.

ATB was also affected by UK sanctions, Dutch news agency ANP reported.

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