Nordea Shuts Accounts of Russian-Owned Kubal, Legal Battle Looms
Nordea's closure of Kubal's accounts threatens employee wages amid ongoing legal disputes.
Key Points
- • Nordea plans to close accounts for Kubal, jeopardizing salaries of 460 employees.
- • Kubal files a lawsuit against Nordea, arguing violation of rights as a Swedish company.
- • Nordea cites compliance with sanctions risks as the reason for account closure.
- • Kubal was sold to Russian firm Rusal in 2007; it has paid significant profits to this parent company.
Nordea has announced its plans to close the accounts of Kubal, a Russian-owned aluminum smelting company in Sundsvall, Sweden, prompting concerns over the financial futures of its 460 employees. This decision, effective immediately, has raised alarms as it threatens to disrupt payroll for Kubal's workforce, which is significant for the local economy.
Kubal's CEO, Mats Andersson, claims the company has maintained transparency and complied with Nordea's requests regarding their operations. In light of the account closure, Kubal has initiated legal proceedings against Nordea in the Stockholm District Court, asserting that the bank's decision violates their rights as a Swedish enterprise. The lawsuit highlights that Kubal operates within Swedish laws despite its Russian ownership since being acquired by Rusal in 2007.
Nordea's rationale for closing the accounts revolves around compliance concerns with sanctions risks, stating Kubal has not met its internal policies regarding connections to Russia. The Swedish Financial Supervisory Authority has indicated that banks retain discretion over account management, and companies do not have a guaranteed right to a payment account. As the situation evolves, Anderson warns that the impact on employee salaries could be severe, with potential consequences for the local workforce and economy.