Sberbank's Legal Battle: Sovereign Immunity Challenged

Sberbank, a Russian state-owned lender, opposes a U.S. court's rejection of its sovereign immunity claim in a lawsuit related to the 2014 MH17 disaster. The court ruled the family of victim Quinn Schansman can sue the bank, alleging its involvement in funding responsible groups.

In a legal clash with international ramifications, Russia's state-owned Sberbank is contesting a U.S. court decision that denies its claim to sovereign immunity. The decision emerges from a lawsuit filed by the family of Quinn Schansman, an 18-year-old American who perished in the 2014 downing of Malaysia Airlines flight MH17 over Ukraine.

The 2nd U.S. Circuit Court of Appeals in Manhattan ruled against Sberbank, accusing the Russian lender of channeling funds through the U.S. banking system to the Donetsk People's Republic. The DPR, backed by Russia, is blamed for the missile attack on the airliner, killing all 298 passengers on board.

Sberbank, expressing strong disagreement with the ruling, is preparing to defend itself further. Meanwhile, Russia continues to deny any involvement in the incident despite Ukraine's designation of the DPR as a terrorist entity and U.S. sanctions against the group.

(With inputs from agencies.)