The claimant, a major transport and logistics company and a member of the World Cargo Alliance (WCA), sought to hold the Russian bank jointly liable for the obligations of a foreign group company, citing the blocking of its funds abroad.

The firm’s team argued that it was unlawful to impose liability on the Russian bank, which was not involved in the underlying transactions. The team argued that the Russian entity could not be regarded as a “part” or “branch” of the foreign defendant and should not be required to reimburse the claimant at its own expense.

The court agreed with the defence and dismissed all claims.

The judgment is particularly noteworthy given the current volatility in case law concerning the liability of Russian companies for debts of affiliated foreign entities.

The KK&P team had previously convinced the Supreme Court of Russia, in Case No. A40-194447/2023, that a Russian member of an international banking group could not be held jointly liable for the obligations of a foreign entity.

However, even following Supreme Court guidance (cases No. A40-194447/2023 and No. A40-167352/2023), courts have continued to take inconsistent approaches and have, in some instances, sided with claimants in similar disputes (for example, Case No. A40-46479/2024).

The judgment is among the first in the current wave of disputes to rule in favour of a Russian bank. It reflects a successful application and further development of the Supreme Court’s approach at the lower court level.

It is expected that the court’s findings will be taken into account by other courts when considering similar claims.