Russian sanctions block bonds worth CZK 1 billion held by Czechs in pension funds

The Russian International Investment Bank (IIB), from which the Czech Republic withdrew shortly after the start of the war in Ukraine, has at least one billion CZK in unpaid bonds held by Czech investors, according to the findings of Czech daily Deník N. Czechia has been demanding payment of its shares from the Moscow-controlled bank since its withdrawal, and last year, IIB announced that it would issue bonds in the Czech currency for CZK 1.5 billion. However, now there is concern that the money will not be returned to investors, as IIB was put on the US sanctions list in April this year and most of its assets are frozen.

According to Deník N, the problem concerns at least seven investment and pension companies, some of which belong to the largest Czech banks.