A Swiss court has rejected Russian investor Viktor Vekselberg's demand for an unfreezing of his accounts at private bank Julius Baer. He will probably appeal the verdict.

A commercial court in Zurich has backed Swiss private bank Julius Baer in its treatment of Viktor Vekselberg, the Russian investor who was put under sanctions by the U.S. in 2018. The bank had decided to freeze assets of the Russian investor in order to comply with the sanctions regime. The court has now decided that the bank was in its right to do so, according to a report by «Tages-Anzeiger» on Friday (behind paywall).

Vekselberg had demanded access to a securities depository account at the bank in a bid to sell some assets. He wanted to use the money to close a loan worth $160 million. The assets at Julius Baer were denominated in U.S. dollars and therefore subject to the sanctions regime. Julius Baer might have violated the sanctions had it given in to the demand of Vekselberg, the court said, adding that the bank not only had a right to do so, but a duty.

A Case for the Federal Court?

The case was formally between Vekselberg's Lamesa holding and Julius Baer. Lamesa had argued that the freezing of the account had been unjustified. The court decided that Lamesa and Vekselberg were to be equated.

«Tages-Anzeiger» also said that the investor likely will appeal the verdict at the highest Swiss court in Lausanne, the Federal Court.

The Bern Case

Since mid-September, a court in the capital of Bern is hearing a case against Postfinance – finews.com reported on the case. Vekselberg accuses the state-owned bank of failing in its duty to provide banking services to people living in Switzerland by denying him an account. He says that he has a right to an account, which he needs to lead a normal life as any citizen.