MOSCOW, August 23 (RAPSI) – The Ninth Commercial Court of Appeals has ruled in favor of Russian largest bank Sberbank by quashing a decision saying its derivative contract worth 66.5 billion rubles (about $1.1 billion at the current exchange rate) with Russian pipeline operator Transneft was illicit, RAPSI learnt in the courtroom on Wednesday.
The court of appeals has quashed the decision of the Moscow Commercial Court of June 21.
At that time, the court annulled a derivatives deal the parties made yet in December of 2013 and said Sberbank had to return to Transneft 66.5 billion rubles ($1.1 billion) rubles because the transaction was invalid.
The court said that Sberbank failed to disclose all relevant information about the deal terms and the mechanism of its implementation to Transneft thus rendering the oil pipeline operator unable to evaluate the possible outcomes of the deal. The first-instance court ruled that the amount was an "excess profit" for Sberbank, which needed to be compensated.
Transneft still has an option to challenge the decision in a higher court.