By Ivan Anderzhanov in Moscow
Russia is to received a $4bn loan from the Bank of New York after dropping a $22.5bn lawsuit against the US financial services group.
Finance Minister Alexei Kudrin insisted the discounted loan was not part of a deal to drop the decade long money laundering charges against the Bank of New York.
The US bank agreed to pay $14m in court costs, the bank and Russia’s federal customs service said in a joint statement.
The claim was based on the actions of the bank’s ex-employee Lucy Edwards (born Ludmila Pritzker), who from 1996-1999 participated in illegal banking operations.
Andrey Belyaninov, the head of the Federal Customs Service, said in a statement: “This case is an example of the increased vigilance of the Russian Federation in international financial markets. The fact that the Russian court scrutinized this case and the fact that the dispute was finally settled by an agreement between the parties also demonstrates the efficiency and independence of Russian courts.”
Matthew Biben, executive vice president and deputy general counsel of The Bank of New York Mellon said: “We are gratified by the settlement of this case. This is a common sense resolution that benefits our company, our employees, shareholders and customers. The Bank of New York Mellon is pleased to have this matter behind us and looks forward to supporting our clients which include Russia’s largest companies.”
