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Restrictions on UniCredit reduced in Russian suit

A Russian court has actually relieved constraints imposed on UniCredit in a suit over an aborted gas task, on Friday allowing the Italian lender to offer Russian sovereign bond holdings as security instead of other possessions and property.

The St Petersburg arbitration court ruled in mid May that 462.7 million euros ($ 503 million) in securities, property and accounts coming from UniCredit, along with 100% of shares in UniCredit Leasing and UniCredit Garant, be seized.

UniCredit Leasing and UniCredit Garant are subsidiaries of AO UniCredit Bank, the Italian group's Russian arm. UniCredit stated earlier in May that the seizure impacted only a fraction of the Russian system's possessions, not the whole subsidiary.

Following the asset seizure, UniCredit's Russian system concurred with the plaintiff, RusChemAlliance, for UniCredit to pledge Russian OFZ treasury bond holdings with a market price of around 50 billion roubles ($ 556 million) rather, the court stated.

UniCredit did not immediately react to a request for remark.

This is considered proportional to the claim ... taking into account that the rate of bonds goes through routine changes depending upon the impact of different external market factors, the court stated.

The OFZ promise agreement softens the terms of existing restrictions, while keeping the possibility of imposing the court's choice in future, the court stated.

The Italian bank was one of the guarantor lending institutions under a. contract for the building and construction of a gas processing plant in. Russia with Germany's Linde, which was terminated due to Western. sanctions.

When the project was stopped, St Petersburg-based. RusChemAlliance, a joint venture that is 50% owned by Russian. gas giant Gazprom, had actually made a 2 billion euro advance. payment on the 10 billion euro agreement, according to Britain's. Supreme Court site.

UniCredit had released part of the guarantee bundle in favour. of RusChem on behalf of Linde.

(source: Reuters)