Deutsche Bank AG may win a legal battle in a dispute with a corporate client over who has to pick up the tap for losses linked to sanctions on Russia, according to a German court.

The case involves Linde, the industrial gases company, and centers on financial exposure stemming from Western sanctions imposed after Russia's invasion of Ukraine. The German court's preliminary indication suggests the bank's position may prevail in determining liability for sanctions-related losses.

This ruling could set a significant precedent for how financial institutions and corporate clients allocate risk in sanctions compliance disputes. The outcome may influence future contract negotiations and risk management strategies across the European banking sector.

Legal experts are closely monitoring the proceedings as the decision could clarify contractual obligations when geopolitical events trigger regulatory restrictions. The case highlights the complex interplay between international sanctions regimes and commercial banking relationships.