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A Moscow court has banned Credit Suisse from disposing its shares in the Russian unit after it failed to repay a loan to one of the Russian lenders that fell under sanctions in the wake of the Ukraine crisis, reported Reuters.
The court is also seeking to seize $10.2m (CHF10m) from the Zurich-headquartered bank.
Credit Suisse was blocked by Moscow’s arbitration court from offloading its shares in Bank Credit Suisse (Moscow) and Credit Suisse Securities (Moscow); two of the Swiss lender’s Russian subsidiaries.
The court ruled in favour of private bank Transcapitalbank (TCB) in a dispute over a €10m loan.
Credit Suisse, which has one month appeal period to challenge the ruling, did not comment on the news.
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Credit Suisse acted as an agent for the loan which was part of a syndication deal between Uzbekistan-based Uzauto Motors.
According to the court finding, the Swiss bank did not transfer the loan repayment from Uzauto Motors to TCB in April when it was due.
TCB was hit with sanctions by the US Treasury a day after the due date for the loan repayment, the report said.
The US treasury said that the Russian lender was “at the heart of sanctions evasion” and had been working to obtain business in China and the Middle East by touting its ability to escape the Western sanctions.
TCB approached the court for the seizure of the €10m loan, saying Western sanctions and Credit Suisse shutting down its activities in Russia would make it impossible to recover the funds in the future.
The news comes as Russian officials move to block foreign banks from selling their Russian units amid Western sanctions on its financial sector.