After three years of protracted litigations, the Russian Federal Customs Service (FCS) and Bank of New York Mellon (BoNY Mellon) finally agreed in October to an out-of-court settlement of the $22.5bln legal suit filed against the U.S. bank in 2007 after its former executive confessed to helping illegally transfer over $7bln out of Russia in the 1990s.
Details of the agreement include the bank’s readiness to pay $14mln to cover the customs’ court expenses and investment into the local economy. The agreement assumed legal power after the Moscow Arbitration Court honored the Customs’ request to drop the lawsuit. Commenting on these developments, FCS Andrei Belyaninov said the peace agreement will be signed in the next few days.
“The bank has agrrreed to invest $4bln in Russia on subsidized terms via state banks.” In an official statement, Matthew Biben, the BoNY Mellon’s vice president, expressed satisfaction with the outcome of the case. “We are pleased to have this matter behind us and look forward to supporting our clients which include Russia’s largest companies.”
Web design,