Leading European banks are taking Linde AG to court in a test case over who should bear the cost of EU sanctions on Russia. Deutsche Bank is seeking roughly €260 million in compensation after Russian courts seized about €244 million of its assets when Linde withdrew from a €10 bn gas project in north‑western Russia. UniCredit has filed a separate claim for around €450 million, while Commerzbank pursues nearly €100 million. The dispute stems from 2021 contracts between Linde Engineering and Rus Chem Alliance, a joint venture half‑owned by Gazprom, to build a processing plant and LNG facility at the Ust‑Luga port. EU sanctions forced Linde to suspend work in 2022; the banks refused to honour performance guarantees, arguing payment would breach sanctions, leading Russian courts to confiscate the assets.

The Frankfurt hearing on Tuesday will clarify whether banks remain liable for guarantee losses or can pass them to the contractor. Linde says the case involves “complex issues relating to a guarantee agreement” and will not comment further.