14 Mar 2023 16:46

Deutsche Bank declines to continue working with operator of Caspian Pipeline Consortium

MOSCOW. March 14 (Interfax) - Deutsche Bank AG is no longer working with the Russian legal entity of the Caspian Pipeline Consortium - CPC-R JSC.

"Cash in U.S. dollars during the reporting period was placed in banks both in Russia and the United Kingdom. Since October 2022 Deutsche Bank AG (London) has withdrawn from operations with CPC-R JSC," the operator said in its reporting to Russian Accounting Standards (RAS).

The consortium is not subject to any international sanctions. In spite of this, it has already encountered difficulties in cooperating with foreign partners. In particular, CPC needed the assistance of Kazakh authorities in solving problems with supplies of equipment - Magzum Mirzagaliyev, CEO of Kazakstan's MazMunayGas, spoke about the relevant consultations with the EU, the United States and Great Britain.

The CPC-R report indicates that in order to diversify risks associated with Western sanctions against banks and counterparties and to ensure timely fulfillment of obligations to suppliers and contractors, the consortium opened accounts in Raiffeisenbank, Gazprombank and Rosbank in 2022.

The document also says that since March 2022, 100% of the insurance coverage acquired by the company has been transferred to the Russian insurance market with the participation of the Russian National Reinsurance Company. Previously, 99% of insurance coverage was placed among reinsurance companies in international markets.