27.03.09

The FCS filed the lawsuit in May 2007. They reported that employees of the bank illegally exported $7.5 billion dollars from Russia in 1996-1999 (the amount of the suit is based on the American Anti-Corruption Law). On February 18 the FCS sent a letter to BoNY lawyers proposing that the sides discuss an amicable settlement. The letter didn’t propose specific terms for an amicable settlement; it only requested that the sides meet to settle the dispute.

The bank didn’t agree to pay damages in the amount of $600 million dollars before the proceedings, said Jonathan Shiller, Thomson Reuters legal adviser of BoNY. In his opinion, $1.4 million would have been more reasonable sum to begin discussing, which is the profit the bank received by transferring the money out of Russia, and which brought charges of money laundering against BoNY Vice President Lucy Edwards. The bank’s lawyer says that the court was informed that the bank’s commission for these transfers was $1.4 million.

The lawyer of the FCS is certain that the charges should be calculated by the size of the harm caused by the bank’s actions. “$1.4 million is not sufficient compensation,” he says. “We are expecting to hear a reasonable offer from the bank.”

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Source: "Vedomosti"