Russian court order to seize the assets of a German company

reported by Mehr News According to Rashatoudi, an arbitration court in Russia ruled to confiscate the assets of the German company Linde due to the company’s refusal to fulfill its obligations in the contract to build a gas processing plant in Russia in 2022.

The German company received an advance payment from a Russian company in 2021, but after the European Union launched a campaign of sanctions against Russia due to military operations in Ukraine, the company transferred the work to Due to the restrictions of the European Union, it was suspended.

The arbitration court of St. Petersburg and Leningrad region ruled in favor of the Russian company “Ruschem Alliance” (RCA), Linde’s client, and announced that more than $1 billion of assets belong to Linde. and its subsidiaries in Europe should be seized to cover damages and interests related to the breach of contract.

According to the court, the work in this contract is not subject to EU sanctions. Among the discussed assets are Linde’s shares in Russian companies.

Rosgaz Dobicha and Gazprom own RCA. In July 2021, this company signed a contract with a consortium of Linde and Renaissance Heavy Industries to design, supply and build a gas processing plant in the Leningrad region.

RCA filed a lawsuit against Linde for approximately 1 billion euros after suspending work in 2022.