Russia's VTB Sues Mozambique State Firm at Center of $2 Billion Debt Scandal

Russian state lender VTB has filed a lawsuit in Britain’s High Court against a Mozambican government company it lent hefty sums to as part of a project now at the center of a $2 billion debt scandal, according to an online court filing, Reuters reported. The filing, dated Dec. 23, names as defendants the Mozambique state and Mozambique Asset Management, which took a $535 million loan from VTB as part of a costly project that U.S. authorities say was an elaborate front for a bribery and kickback scheme. It says the case relates to “general commercial contracts and arrangements” but does not elaborate. It provides no further information other than that VTB Capital, the investment banking arm of VTB, is being represented by law firm Freshfields Bruckhaus Deringer. Read more