In a recent court decision, the Swiss raw materials company Glencore has been ordered to pay Sberbank in the form of investments in an oil company and an aluminum manufacturer. This comes after a dispute over unpaid deliveries of fuel from Sberbank’s Swiss raw materials trading subsidiary to Glencore, which was unable to be completed due to Western sanctions.
The arbitration tribunal has ruled that Glencore must pay 11.4 billion rubles to Sberbank, equivalent to around 110 million francs. 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.
Glencore continues to hold stakes in Russian companies such as Rosneft and EN+, which includes the aluminum group Rusal. The situation highlights the challenges faced by Western companies looking to sell interests in Russia amid geopolitical tensions and sanctions. Despite this, the Swiss company is still working to meet its legal obligations under existing contracts while adhering to sanctions.
The 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 energy and consumer goods companies look for ways out of their investments in Russia, they are finding it increasingly difficult due to sanctions and geopolitical tensions between Russia and other countries.
Overall, this court decision serves as a reminder that even established businesses must navigate through complex political environments when conducting business abroad. It also raises concerns about how other Western companies will handle similar disputes or challenges when operating in countries with strained relations or imposed sanctions on certain industries or individuals.
