The Moscow Arbitration Court has registered a lawsuit filed by the Prosecutor General’s Office of Russia against the Bank of Latvia and Latvia’s Rietumu Banka, along with its Moscow representative office and affiliated companies KI INVEST LLC and RB Investments SIA.
Allegations of Illegal Asset Seizure
According to case documents, Russian prosecutors accuse Rietumu Banka of illegally seizing Russian state property and conducting activities aimed at undermining the country’s economic sovereignty.
Investigators claim that through its subsidiaries, Rietumu Banka maintained control over KI INVEST LLC, which owns more than 1.24 hectares of land and 14,000 sq. m of real estate in Moscow. These assets were allegedly used in schemes to transfer income abroad in violation of Russian economic restrictions.
Alleged Capital Flight
The supervisory authority stated that between 2022 and 2024, more than 105 million rubles were withdrawn to Rietumu Banka under the guise of loan repayments. The loan agreement, originally signed in 2016, was allegedly structured to avoid debt reduction while facilitating capital transfers abroad.
Currently, the debt owed stands at more than 2.15 billion rubles, which prosecutors argue is part of a deliberate scheme to bypass Russian sanctions.
Bilateral Tensions with Latvia
The lawsuit also highlights political tensions. In August 2022, Latvia officially recognized Russia as a “state sponsor of terrorism” and later approved legislation leading to the expropriation of the Moscow House complex in Riga.
Prosecutors allege that proceeds from the property’s sale were directed toward funding Ukraine’s defense against Russia. They also claim that Rietumu Banka actively participated in sanctions enforcement and supported Latvia’s policies targeting Russia.
Prosecutor’s Demands
The Russian Prosecutor General’s Office is demanding the confiscation of 100% of KI INVEST LLC shares from Rietumu Banka and its affiliates in favor of the Russian state. Officials argue the bank’s actions constitute subversive financial activity against Russia’s national interests.
⚖️ Disclaimer: This article reports on ongoing legal proceedings. Allegations mentioned are based on claims made by the Prosecutor General’s Office of Russia and have not been independently verified.