Goldman Sachs Tells Russian Court It Can't Settle Debts Due to Sanctions, Report Says
The Moscow Arbitration Court in an Aug. 1 order froze shares of companies owned by Goldman Sachs Group, worth around $36 million, after Russian bank Otkritie filed a lawsuit against the U.S. banking giant, the Financial Times reported. State-owned Otkritie said Goldman refused to fulfill $6.4 million in debt obligations under derivatives deals between the two banks. Goldman said it was not able to settle the debt due to sanctions set against the Russian bank, FT reported.
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Otkritie said Goldman Sachs wanted to leave Russia, making debt collection impossible. This prompted the court to freeze the bank's assets, which included a 5% stake in Detsky Mir, Russia's largest children's goods retailer, FT said. Also at play are smaller stakes in other Russian companies, including Sberbank and VTB, Gazprom, Lukoil, Aeroflot and Magnit.
Goldman Sachs did not comment on the order.