Moscow's Arbitration Court faced a demand from the Russian Prosecutor's Office, seeking the seizure of properties belonging to Rietumu Banka.
Rietumu Banka, a prominent Latvian financial institution, is embroiled in a legal dispute with the Russian Prosecutor General's Office. The Russian authorities have filed a lawsuit against Rietumu Banka, the Bank of Latvia, Rietumu Banka’s Moscow representative office, and affiliated companies KI INVEST LLC and RB Investments SIA in the Moscow Arbitration Court.
The lawsuit, filed on August 12, 2025, centers on allegations that Rietumu Banka has illegally seized Russian state-linked funds and violated economic sanctions. Specifically, the bank is accused of blocking funds exceeding USD 81,000 belonging to the Moscow Center for International Cooperation on February 25, 2022, in compliance with sanctions against Russia. Russia claims these actions are illegal and undermine its economic sovereignty.
In addition to the fund seizure, Russia alleges that Rietumu Banka and its subsidiaries, such as KI INVEST LLC, have engaged in illegal asset transfers and capital flight schemes. KI INVEST, for instance, is accused of controlling significant real estate in Moscow, used to transfer income abroad contrary to Russian economic restrictions.
The Russian Prosecutor General's Office further claims that more than 105 million rubles were allegedly withdrawn to Rietumu Banka under the pretext of loan repayments from Russia between 2022 and 2024, based on a 2016 loan agreement structured to prevent debt reduction and facilitate capital transfer abroad. The current debt claimed is over 2.15 billion rubles, which prosecutors argue is part of a scheme to evade Russian sanctions.
Rietumu Banka's representative, Janis Zagars, stated that the bank had not yet received any official information about these developments. The application has not yet been accepted for proceedings as of mid-August 2025.
In a related development, Latvia's parliament, the Saeima, adopted a law in January 2024 transferring the so-called Moscow House in Riga to state ownership. Rietumu Banka aims to complete the process of reducing its exposure in Russia and Belarus by the end of 2024.
The Russian Prosecutor General's Office also claims that KI Invest's properties in Moscow and Moscow Oblast, all shares, movable and immovable property, Rietumu Banka's representative office in Moscow, and all securities, shares, and stakes in legal entities owned by these companies should be arrested. The defendants in the case include Rietumu Banka, the Bank of Latvia, Rietumu Banka's representative office in Moscow, Rietumu Banka's companies KI INVEST and RB Investments, and the claim refers to "unlawful seizure of Russian state property by the Republic of Latvia."
The case remains pending acceptance for court proceedings as of late August 2025.
[1] "Russia files lawsuit against Latvia's Rietumu Banka in Moscow Arbitration Court" - Reuters, August 12, 2025. [2] "Russia accuses Latvia's Rietumu Banka of illegal asset transfers and sanctions violations" - Bloomberg, August 12, 2025.
- The legal dispute regarding Rietumu Banka, a prominent Latvian financial institution, involves allegations of illegal seizure of Russian state-linked funds and violations of economic sanctions, originating from the Russian banking and finance industry.
- Russia claims that Rietumu Banka, along with its subsidiaries and affiliated companies, engaged in illegal activities such as asset transfers, capital flight schemes, and illegal fund seizures, which impacted the general news category as well as crime and justice.
- The case, with its charges concerning economic sanctions violation and economic sovereignty undermining, has drawn the attention of the Russian Prosecutor General's Office, politics, banking-and-insurance sectors, and the business world at large.
- As the court proceedings remain pending, the business relationships of Rietumu Banka with other banks, such as the Bank of Latvia, and its companies, like KI INVEST and RB Investments, are hanging in the balance, risking potential repercussions for the broader industry.
