Russian Prosecutor's Office turns to Moscow Arbitration Court claiming that Rietumu Banka properties be arrested

RIGA - Russian Prosecutor General's Office has filed a lawsuit in Moscow Arbitration Court against Latvia's Rietumu Banka, claiming that properties of the bank be confiscated and handed over to the state of Russia, Interfax news agency reports.

The application was submitted on August 12 but has not yet been accepted for proceedings. The details of the claim have not been disclosed.

Among the defendants are Rietumu Banka, the Bank of Latvia, Rietumu Banka's representative office in Moscow, as well as Rietumu Banka's companies KI INVEST and RB Investments.

The third parties in the case are the Russian Federal Agency for State Property Management (Rosimushchestvo), the Central Bank of Russia, and Moscow Center for International Cooperation.

A source familiar with the lawsuit told Interfax that the Russian prosecutor general's claim refers to "unlawful seizure of Russian state property by the Republic of Latvia," and the fact that on February 25, 2022 Rietumu Banka blocked funds of Moscow Center for International Cooperation in the amount of over USD 81,000, claiming that this was necessary in accordance with the sanctions against the Russian Federation.

According to the Russian Prosecutor General's Office, these actions are unlawful and undermine economic sovereignty of Russia.

KI Invest owns several properties in Moscow and Moscow Oblast. The Russian Prosecutor's Office claims in the lawsuit that all KI Invest shares, movable and immovable property, as well as Rietumu Banka representative office in Moscow be arrested, as well as all securities, shares, and stakes in legal entities owned by these companies.

Rietumu Banka's representative Janis Zagars told LETA that the bank had not yet received any official information about these developments and therefore had no comment.

Rietumu Banka said in its 2023 annual report that the bank no longer made new investments or launched new projects in Russia and Belarus, and that, in line with its 2023-2028 business development strategy, the bank was only engaged in winding down past investments and fulfilling its obligations in the two countries. The bank said that it was reducing its exposure in Russia and Belarus, and that the process would be complete by the end of 2024.

LETA also reported, in order to guarantee the security of Latvia, including the prevention and timely prevention of threats to the democratic state, the Saeima adopted a law on the transfer of the so-called Moscow House in Riga to state ownership in January 2024. The government, in turn, transferred the building to the Ministry of Finance, so that the State Real Estate Agency could then sell it at auction.