Moscow Court Collects $31Mln From US Honeywell's Affiliate In Favor Of Russian Bank

(@FahadShabbir)

Moscow Court Collects $31Mln From US Honeywell's Affiliate in Favor of Russian Bank

A Moscow court on Tuesday collected 2.2 billion rubles ($31 million) from a Russian company affiliated with the US's Honeywell International corporation, which produces electronic control and automation systems, in favor of Russian bank Rosbank

MOSCOW (UrduPoint News / Sputnik - 31st January, 2023) A Moscow court on Tuesday collected 2.2 billion rubles ($31 million) from a Russian company affiliated with the US's Honeywell International corporation, which produces electronic control and automation systems, in favor of Russian bank Rosbank.

Between 2019 and 2021, Rosbank gave Honeywell's Russian affiliate five guarantees under contracts with a gas processing plant in the Irkutsk region in Siberia. The affiliate failed to fulfill its obligations and faced a lawsuit.

In 2021, the Russian affiliate provided Honeywell with a 2.3 billion ruble loan. In April 2022, the US corporation announced the suspension of its operations in Russia amid the military operation launched by Moscow in Ukraine, and the sides agreed to extend the loan repayment period to 50 years.

Rosbank stated that it effectively meant a donation with no real possibility of getting the money back.

Further, Rosbank argued that Honeywell International was one of the world's largest military corporations and a subcontractor of the US government. In particular, the bank said, it produces engines for Abrams tanks, which are supplied to Ukraine to fight against Russian forces. If assets of Honeywell's affiliate are not seized, the company will be able to send money to the United States in the future, Rosbank specified. Following this argumentation, the court seized funds of the aforementioned company.

Until May 2022, Rosbank was part of the French banking group Societe Generale, which sold the bank and its insurance business in Russia to the Interros conglomerate owned by Russian businessman Vladimir Potanin.