A Swiss raw materials company Glencore has been ordered by a Russian court to pay Sberbank in the form of investments in an oil company and an aluminum manufacturer, following a dispute over unpaid deliveries of fuel from Sberbank’s Swiss raw materials trading subsidiary to Glencore. The arbitration tribunal had previously ordered Glencore to pay 11.4 billion rubles, equivalent to around 110 million francs, as part of its second lawsuit against the major Russian bank.
Sberbank is seeking payment in the form of shares from Glencore’s remaining holdings in Russian raw materials companies such as Rosneft and EN+, which includes the aluminum group Rusal. This case highlights the challenges faced by Western companies looking to sell interests in Russia amid geopolitical tensions and sanctions. The situation also raises concerns for other Western companies that are looking to exit their investments in Russia.
Glencore continues to hold stakes in Russian companies despite finding it difficult to divest from its Russian holdings due to current geopolitical landscape. Despite this, the Swiss company is still working to meet its legal obligations under existing contracts while adhering to sanctions. The court decision and ongoing challenges faced by Glencore and other Western companies operating in Russia underscore the complex dynamics of international business in a changing geopolitical landscape.