International Industrial Bank (in

Russian Russian(s) refers to anything related to Russia, including: *Russians (, ''russkiye''), an ethnic group of the East Slavic peoples, primarily living in Russia and neighboring countries *Rossiyane (), Russian language term for all citizens and peo ...

: Международный Промышленный Банк, often abbreviated as Mezhprombank, Межпромбанк, or MPB, МПБ) is one of the largest

Russia Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...

n banks founded in 1992 by

Sergey Pugachyov Sergei Viktorovich Pugachev, also spelled Sergey Pugachyov, (french: Sergueï Pougatchev, russian: Сергей Викторович Пугачёв; born 4 February 1963) is a Russian-born French business magnate. He is a doctor of technical ...

and

Sergey Veremeenko Sergey Alekseyevich Veremeenko (born 26 September 1955) is a Russian businessman and politician who, according to ''Forbes'' magazine, has a net worth of 1.4 billion US dollars. He has investments in steel, mining, banking and microchips. He has 2 ...

. On July 6, 2010, IIB failed to pay €200 million in maturing

eurobonds Eurobond may refer to: * Eurobond (external bond) A eurobond is an international bond that is denominated in a currency not native to the country where it is issued. They are also called external bonds. They are usually categorised according t ...

. The bank is in discussions with bondholders, the

Central Bank of Russia The Central Bank of the Russian Federation (CBR; ), doing business as the Bank of Russia (russian: Банк России}), is the central bank of the Russian Federation. The bank was established on July 13, 1990. The predecessor of the bank can ...

, and depositors to stabilize its deteriorating liquidity position. On 30 November 2010, a Moscow court declared the

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

and the

insolvency In accounting, insolvency is the state of being unable to pay the debts, by a person or company ( debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-sheet i ...

of this bank. In 2006, the bank uncovered that OPK Trust Company based in

New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...

owns 100 percent share of it. OPK Trust Company is controlled by

. On November 26, 2001,

Novaya Gazeta ''Novaya Gazeta'' ( rus, Новая газета, t=New Gazette, p=ˈnovəjə ɡɐˈzʲetə) is an independent Russian newspaper known for its critical and investigative coverage of Russian political and social affairs. It is published in Mo ...

published an article by Oleg Lurie claiming that the management of the bank had been involved in money laundering in the

Bank of New York The Bank of New York Mellon Corporation, commonly known as BNY Mellon, is an American investment banking services holding company headquartered in New York City. BNY Mellon was formed from the merger of The Bank of New York and the Mellon Financ ...

. The International Industrial Bank in response brought a libel suit against the newspaper citing financial losses, as a number of its customers had allegedly changed the terms of their accounts in a loss-making way because of the publication. On February 28, 2002, the bank won the case in

Moscow Moscow ( , US chiefly ; rus, links=no, Москва, r=Moskva, p=mɐskˈva, a=Москва.ogg) is the capital and largest city of Russia. The city stands on the Moskva River in Central Russia, with a population estimated at 13.0 million ...

Basmanny municipal court Basmanny District (russian: райо́н Басма́нный) is a district of Central Administrative Okrug of the federal city of Moscow, Russia. Population: The district extends northeast from Kitai-gorod, within the radial boundaries of ...

and was awarded 15 million

ruble The ruble (American English) or rouble (Commonwealth English) (; rus, рубль, p=rublʲ) is the currency unit of Belarus and Russia. Historically, it was the currency of the Russian Empire and of the Soviet Union. , currencies named ''rub ...

s (about $500,000) in lost revenue, an unprecedented sum for Russian newspapers. In April the decision was reconfirmed by a court. However, in an article of May 27, 2002,

Yulia Latynina Yulia Leonidovna Latynina (russian: Ю́лия Леони́довна Латы́нина; born 16 June 1966) is a Russian writer and journalist. She is a columnist for ''Novaya Gazeta'' and the most popular host at the Echo of Moscow radio stat ...

, a journalist of Novaya Gazeta, revealed that the bank's three customers named in the lawsuit were its subsidiaries or otherwise controlled by its board of directors, and claimed that Novaya Gazeta had requested to open a criminal fraud investigation into the activities of the bank. As a result, in June 2002 the bank renounced its claim to the compensation.

References

External links

Official site
(in Russian) {{authority control Defunct banks of Russia Companies based in Moscow Banks established in 1992 Banks disestablished in 2010