"Rietumu banka" in Russia may lose real estate worth 16 million euros, the bank reported to LETA.
At the same time, the bank notes that its regulatory capital may decrease by approximately four million euros.
As reported by the bank, on Tuesday, December 2, the Arbitration Court of Moscow considered a civil case initiated by the General Prosecutor's Office of Russia against the bank and other parties. The first instance court granted the prosecutor's claim.
Since this is a first instance decision, the bank is appealing it in the established manner. All further actions will be carefully assessed after receiving and reviewing the full text of the decision, the bank added.
The expected amount of losses is related to the property owned by the subsidiary "Rietumu bankas" in Russia, valued at 16 million euros.
"In recent years, 'Rietumu banka' has made all necessary capital adjustments in cooperation with the regulator and has formed reserves regarding the remaining assets in Russia. Thanks to the preventive measures taken, the impact of this decision on the bank's regulatory capital will be minimal — it will decrease by four million euros," the bank stated, emphasizing that this will not affect the bank's day-to-day operations, the implementation of its strategy, or compliance with regulatory requirements.
The bank also stated that its capital adequacy and liquidity ratios will remain high and exceed the standards.
As previously reported by LETA, in August 2025, the General Prosecutor's Office of Russia filed a lawsuit in the Arbitration Court of Moscow demanding the confiscation of "Rietumu bankas" property in favor of the state.
Among the defendants are "Rietumu banka" itself, the Bank of Latvia, the representation of "Rietumu bankas" in Moscow, as well as companies owned by the bank — "KI Invest" and "RB Investments". Third parties in the case include Rosimushchestvo, the Central Bank of Russia, and the Moscow Center for International Cooperation.
According to a source from the Interfax agency, the case is related to the transfer of the so-called "House of Moscow" in Riga to the ownership of the Latvian state and the blocking of "Rietumu banka" funds amounting to over 81,000 US dollars from the Moscow Center for International Cooperation on February 25, 2022, due to the need to comply with the sanctions regime regarding transactions with Russia.
In the lawsuit, the Russian General Prosecutor's Office described these actions as "illegal seizure of Russian state property and subversive activities against the economic sovereignty of Russia, carried out by the Republic of Latvia and the associated financial organization 'Rietumu banka'."
The company "KI Invest" in Russia owns land plots totaling over 1.24 hectares, buildings, and commercial premises with a total area of over 13,800 square meters in Moscow and the Moscow region. To maintain control over the assets, the bank pledged 100% of the shares of "KI Invest" and the real estate managed by the company. According to the lawsuit, through the status of the sole participant of the company and with the help of a loan agreement, the bank withdrew rental income from real estate amounting to 105 million rubles (approximately 1.1 million euros) from Russia and continues to withdraw funds, thereby violating Vladimir Putin's decree of March 5, 2022, on "special economic measures."
As reported by Interfax, the plaintiff demands to declare invalid the agreement between "Rietumu banka" and the Bank of Latvia dated February 25, 2022, regarding the implementation of EU sanctions against Russia, as well as the loan agreement between "Rietumu banka" and "KI Invest" and a number of transactions totaling 105 million rubles, as well as to confiscate 100% of the capital of "KI Invest" in favor of Russia.
Additionally, the plaintiff requests to impose protective measures: to arrest all capital shares, movable and immovable property of "KI Invest", as well as the property of "Rietumu bankas" and its representation in Moscow. The General Prosecutor's Office also demands the arrest of all securities, shares, and stakes in the capitals of legal entities owned by these companies.
In early 2024, "Rietumu banka" urged the members of the Saeima not to rush to transfer the "House of Moscow" to state ownership, pointing out that the consequences of such a law could affect Latvian companies with assets in Russia.
The Chairman of the Board of "Rietumu bankas", Elena Buraya, emphasized in a letter to the parliamentary commission on defense, internal affairs, and anti-corruption that the bank fully understands the symbolic significance of transferring the "House of Moscow" to the Latvian state and solidarity with the Ukrainian people, as well as security considerations. However, she warned that the adoption of such a law would give the aggressor a reason to take retaliatory measures against Latvian entrepreneurs, including "Rietumu bankas", whose assets in Russia are frozen, which could lead to their nationalization.
This concerns not only "Rietumu bankas" but also other Latvian entrepreneurs. According to her, the volume of assets that may be lost by Latvian companies and taxpayers is measured in tens of millions of euros.
She also noted that representatives of "Rietumu bankas" strongly condemn Russia's aggression against Ukraine and support Ukraine in its struggle. As a result of providing assistance, Ukraine has faced unfair and illegal actions by Russian law enforcement agencies and judicial decisions directed against entrepreneurs from unfriendly countries. In her letter, Buraya points out that Russian courts openly encourage debtors of "Rietumu bankas", pledgers, or individuals wishing to profit at the bank's expense to file lawsuits in Russian courts against companies such as "Rietumu banka".
On January 11, 2024, the Saeima finally adopted the law "On actions with real estate necessary to eliminate threats to national security", which provides for the transfer of the so-called "House of Moscow" to state ownership. The purpose of the law is to ensure the national security of Latvia, including preventing threats to the democratic order.
In its annual report for 2024, "Rietumu banka" states that after the start of Russia's full-scale invasion of Ukraine, the bank immediately ceased all financial projects and new investments in Russia and Belarus. The bank is consistently reducing its exposure in these countries — by the end of 2024, it amounted to 6.9% of the total assets.
The bank's net risk position in Russia at the end of 2024 was 83.5 million euros, and in Belarus — 8.5 million euros. A year earlier, these amounts were 95.1 million and 14.3 million euros, respectively.
By asset volume, "Rietumu banka" ranks fifth among banks in Latvia. The largest shareholders of the bank are LLC "Esterkin Family Investments" (33.12%), the Maltese company "Boswell (International) Consulting Limited" (33.11%), and LLC "Suharenko Family Investments" (17.34%). The sole owner of "Esterkin Family Investments" is Leonid Esterkin, while "Suharenko Family Investments" is owned by Arkadiy Sukharenko.
