Deutsche Bank and UniCredit sue Linde over Russia sanctions losses

Deutsche Bank ↘ 1.73%, UniCredit, and Commerzbank have filed lawsuits in Germany against industrial gases group Linde ↘ 0.31% in what is being described as a test case over who should bear hundreds of millions of euros in losses stemming from western sanctions on Russia.

The first case is set to be heard in a Frankfurt court on Tuesday, with Deutsche Bank seeking approximately €260 million in compensation from Linde for assets seized by Russian courts, according to the Financial Times.ft+1

The Dispute

The lawsuits center on bank guarantees issued for RusChemAlliance's gas processing and liquefaction complex at the Baltic port of Ust-Luga. Linde had been contracted to build the plant but suspended work in May 2022 after the European Union imposed sanctions on Russia following its invasion of Ukraine.interfax+1

After Linde halted construction, RusChemAlliance — a Gazprom venture — demanded payment under the bank guarantees. The banks refused to pay, citing sanctions restrictions. RusChemAlliance then turned to Russian courts, which in May 2024 ordered the seizure of assets belonging to Deutsche Bank, Commerzbank, and UniCredit totaling more than €700 million. A Russian court subsequently ruled to partially satisfy a €239 million claim against Deutsche Bank.bloomberg+2

The total claims filed by RusChemAlliance against the European banks exceeded €1.1 billion.tass

A Precedent-Setting Case

The banks are now arguing that Linde, as the party whose contractual obligations triggered the guarantee calls, should compensate them for the losses. The case is being closely watched across the financial and corporate sectors because it could set a precedent for how banks and their corporate clients share the burden of Russia-related losses.ft+1

Deutsche Bank had previously disclosed provisions of around €260 million for the Russian litigation. UniCredit faced asset seizures of €463 million in Russia, while Commerzbank had approximately €94 million frozen.swissinfo+3

Broader Context

The dispute is one of the most complex legal tangles to emerge from western sanctions on Russia. It has already spawned proceedings across multiple jurisdictions, including arbitration cases and anti-suit injunctions in courts from Hong Kong to London. In February 2025, a UK Court of Appeal discharged an injunction UniCredit had obtained against RusChemAlliance.mayerbrown+1

The outcome in Frankfurt could determine whether financial institutions that issued guarantees on behalf of corporate clients can pass losses back to those clients when sanctions make performance impossible — a question with implications for banks across Europe still unwinding their Russian exposures.