Deutsche Bank and UniCredit Sue Linde Over Russia Sanctions Losses

13th Jul 2026
Deutsche Bank and UniCredit have sued Linde in Germany over losses linked to guarantees issued for RusChemAlliance’s Ust-Luga gas project. Current reports place UniCredit’s claim at about €450 million, against losses of roughly €460 million, and Deutsche Bank’s claim at about €260 million. Commerzbank is pursuing a related action. The proceedings could determine whether lenders can recover losses caused by Russian enforcement from the contractor whose work stopped after European Union sanctions took effect. The underlying dispute concerns two 2021 contracts for gas processing and liquefied natural gas plants in Russia. The UK Supreme Court recorded that RusChemAlliance agreed to pay approximately €10 billion, including advance payments of around €2 billion. UniCredit issued seven on-demand bonds governed by English law, with disputes assigned to International Chamber of Commerce arbitration in Paris. Linde suspended its Russian engineering agreements on 27 May 2022 in compliance with applicable sanctions. RusChemAlliance, which Linde identifies as 50% owned by PJSC Gazprom, demanded repayment and called on the bank guarantees. UniCredit refused payment because it considered payment prohibited by Article 11 of Council Regulation (EU) No 833/2014. RusChemAlliance later claimed €448 million against UniCredit before the Arbitrazh Court of St Petersburg and the Leningrad Region. Deutsche Bank’s 2025 annual report states that it recognised a €260 million provision and a corresponding reimbursement asset under an indemnification agreement in 2023. RusChemAlliance enforced a €244 million claim, including interest, against Deutsche Bank’s Russian assets in November 2024. The reimbursement asset was later removed from the bank’s accounts, although Deutsche Bank maintains that it has a valid indemnification claim and is defending its position in court. The wider dispute has already reached the UK Supreme Court in UniCredit Bank GmbH v RusChemAlliance LLC [2024] UKSC 30. Lord Leggatt, Lord Reed and Lady Rose were among the justices who dismissed RusChemAlliance’s appeal over the English court’s jurisdiction. In February 2025, the Court of Appeal revoked the injunctive parts of its earlier order at UniCredit’s request after a Russian court threatened a €250 million penalty, while leaving the jurisdictional declarations in place. Linde’s annual report records a $1.2 billion contingent liability relating to advance payments for the terminated RusChemAlliance projects. Linde is pursuing claims through the Hong Kong International Arbitration Centre, while its subsidiaries have brought damages proceedings in Germany, the Netherlands and the US District Court for the Southern District of New York. The claims involving Deutsche Bank, UniCredit and Commerzbank will turn on the wording of the indemnities, the effect of EU sanctions and whether losses caused by Russian asset seizures can be passed back to Linde. The German courts must decide whether the guarantees leave the sanctions-related losses with the lenders or entitle them to recover from Linde. The judgments could influence the wording of indemnities and guarantee provisions in future cross-border contracts.