Russia Targets Latvian Bank Rietumu With Asset Seizure Lawsuit
Table of Contents
Moscow is seeking the confiscation of assets belonging to Latvia’s Rietumu Banka, escalating tensions amid ongoing geopolitical disputes.
The Russian Prosecutor General’s Office has filed a lawsuit in Moscow Arbitration Court against Rietumu Banka, a Latvian financial institution, demanding the transfer of the bank’s properties to the Russian state. The application, submitted on August 12, is currently awaiting acceptance for proceedings, and the specific details of the claim remain undisclosed.
Broadening the Scope of the Legal Action
The lawsuit names several entities as defendants, including Rietumu Banka itself, the Bank of Latvia, Rietumu Banka’s representative office in Moscow, and the bank’s affiliated companies, KI INVEST and RB Investments. Additionally, the Russian Federal Agency for State Property Management (Rosimushchestvo), the Central Bank of Russia, and the Moscow Center for International Cooperation are listed as third parties in the case.
Sanctions and Alleged Property Seizure at the Heart of the Dispute
According to a source familiar with the lawsuit, the core of the Russian claim centers on allegations of “unlawful seizure of Russian state property by the Republic of Latvia.” The legal action specifically references Rietumu Banka’s decision on February 25, 2022 – shortly after the onset of the conflict in Ukraine – to block funds belonging to the Moscow Center for International Cooperation, totaling over USD 81,000. The bank justified this action as compliance with international sanctions imposed on the Russian Federation.
The Russian Prosecutor General’s Office argues that these actions were unlawful and represent an infringement on Russia’s economic sovereignty.
Targeting Assets in Moscow and Beyond
The lawsuit seeks a broad range of asset seizures. The Russian Prosecutor’s Office is requesting the arrest of all shares, movable and immovable property belonging to KI Invest, which owns multiple properties in Moscow and the Moscow Oblast. The claim also extends to the Rietumu Banka representative office in Moscow, encompassing all securities, shares, and stakes in legal entities owned by these companies.
Rietumu Banka’s Response and Strategic Shift
Janis Zagars, a representative for Rietumu Banka, stated the bank has not yet received official notification of the lawsuit and therefore has no comment at this time. However, the bank’s 2023 annual report reveals a strategic shift away from Russia and Belarus. According to the report, Rietumu Banka ceased new investments and project launches in both countries and is currently focused on winding down existing investments and fulfilling outstanding obligations. The bank anticipates completing this process by the end of 2024, effectively reducing its exposure in the region.
Latvia Strengthens Security Measures
This legal action occurs against a backdrop of heightened security concerns in Latvia. In January 2024, the Latvian Saeima passed legislation transferring ownership of the “Moscow House” in Riga to the state. The building was subsequently transferred to the Ministry of Finance, with plans to sell it at auction through the State Real Estate Agency, a move intended to bolster Latvia’s security and prevent potential threats to its democratic institutions.
The lawsuit against Rietumu Banka represents a significant escalation in the economic and legal tensions between Russia and Latvia, signaling a continued willingness by Moscow to pursue claims related to sanctions and alleged property seizures.
