Austrian Bank to Sue Russian Government

An Austrian bank is planning to sue the Russian government in the Austrian Arbitration Court. This was announced today by Sergei Stepashin, the head of the Russian Audit Chamber, at a meeting of the chief judges of Russia's arbitration courts. According to Stepashin, the intention to sue the Russian government is based on the fact that the Railway Ministry is not repaying a USD 200-million loan taken out in 1998 according to the conditions of the loan agreement. The loan is guaranteed by the Russian government.

Stepashin underlined that the Austrian bank 'is trying to conduct the matter as publicly as possible.' He added that 'this may have a highly negative effect on the investment climate in Russia.'