The Bank of New York Mellon (BK.N) said on Tuesday it will meet with the Russian government to discuss settlement of a $22.5 billion lawsuit Russia has leveled against it.
The government, prompted by its need to raise money and cut expenses amid the economic turmoil, is ready to settle the case for $800 million, Kommersant reported on Tuesday.
"We are talking about a political decision, which is fully logical in a period of global financial crisis," the business daily quoted a source in Prime Minister Vladimir Putin's government as saying.
In response to the report, the bank said in a statement it was encouraged by the invitation and looked forward to meeting with the government. It added, however, that any settlement would have to reflect the "meritless nature of the claims."
Steven Marks, the lead attorney for the government, said he will continue to press for a judgment against the bank at the next hearing on March 10 and beyond.
"The bank's attitude reflects a continued denial of the government's commitments to this case, the merits of this case. We have every intention of moving it forward to a final judgment," Marks told Reuters.
Since May 2007, Russia has been seeking compensation from the U.S. bank after a former vice-president helped transfer $7 billion out of Russia in the late 1990s through Bank of New York Securities Attorney accounts.
The U.S. bank rejected an initial offer to settle for $600 million before the case was filed in 2007. Its spokesman declined to comment on the settlement value of $800 million reported by Kommersant.
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