The Tel Aviv District Court today accepted the request of Roman Abramovich and ZAKA search and rescue organization, and ordered Mizrahi Tefahot Bank to transfer the 8 million shekels that the Israeli-Russian billionaire wishes to donate to the search and rescue organization. The instruction was given despite opposition from the attorney general, the Bank of Israel and the banking supervisor, who supported the bank’s refusal to transfer the funds. Mizrahi Tefahot Bank said it would appeal the decision and as a result the decision was suspended for 72 hours.
Abramovich is subject to sanctions from the EU and UK and although Israel has not adopted these sanctions, Mizrahi Tefahot Bank has blocked Abramovich’s bank account in Israel.
After the October 7 atrocities, Abramovich agreed to give 8 million shekels to ZAKA, but the bank refused to transfer the money. Mizrahi Tefahot argued that the bank’s risk management policy, which the regulator’s instructions require it to implement, prohibits it from allowing the continuation of banking and commercial activities with entities on the sanctions lists published by certain entities abroad, including the EU and the UK. Since Abramovich is on these lists, the bank insisted that it could only transfer the funds if Abramovich obtained authorization to do so.
Abramovich and ZAKA filed a lawsuit against the bank in the Tel Aviv District Court through Advs. Shmuel Cassouto and Bella Feld request that an injunction be issued to Mizrahi Tefahot ordering him to transfer the donation to ZAKA. Earlier this week, Attorney General Gali Baharav-Miara supported the view of the Bank of Israel and the banking supervisor that transferring the funds would put the bank at risk by violating EU and US sanctions. United Kingdom.
However, today Tel Aviv District Court Judge Yardena Seroussi rejected the Attorney General’s decision and issued a temporary injunction for the transfer of the funds. She said no concrete evidence had been provided to support the concerns expressed by the bank about the economic damage that could result from breaching EU sanctions. She said: “The bank did not examine on the merits of the case and on the basis of individual data, whether it was appropriate to exclude the transfer of a donation from an Israeli account to an Israeli account , while examining the benefit that would result from it. of this against potential damage. She added that the bank had « copied » foreign sanctions, without exercising independent judgment.
The judge accepted Abramovich and ZAKA’s argument that the sanctions do not include a ban on the transfer of the donation, since they do not apply in Israel.
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Av. Shmulik Cassouto said: “We thank the court for its decision allowing Mr. Abramovich to donate NIS 8 million to ZAKA. The purpose of the trial was to allow ZAKA, an organization that receives minimal government funding, to prepare for future challenges and continue to carry out its sacred work for the Israeli people. ZAKA is an important asset to the State of Israel and Mr. Abramovich is proud to support the organization’s activities.
Published by Globes, Israel Business News – fr.globes.co.il – January 30, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.
