U.S. FUND SUES RUSSIA OVER 1916 DEBT

A U.S. fund just dragged 1916-era Russian debt into a 2026 courtroom, with billions and geopolitical consequences on the line.

A dormant chapter of European financial history has reemerged in a contemporary legal arena, drawing direct lines between pre-revolutionary debt instruments and current geopolitical disputes. In January 2026, Noble Capital RSD, a U.S.-based investment fund, filed a claim in the U.S. District Court for the District of Columbia seeking over $225 billion in compensation from the Russian Federation, asserting that it remains liable for unpaid sovereign bonds issued under the Russian Empire in 1916.

The case focuses on bonds originally issued through a syndicate led by Citibank, carrying a 5.5 percent interest rate and a 1921 maturity. These securities were effectively repudiated by the Bolshevik government following the 1917 Revolution and have not been honored by any subsequent Russian administration. Noble Capital claims to hold $25 million in face value of the bonds and has calculated the claim amount by applying compounded interest over 109 years.

Moscow has rejected the legal basis of the claim and signaled its intent to challenge the case under the Foreign Sovereign Immunities Act (FSIA), a U.S. statute that protects foreign states from being sued in U.S. courts under most circumstances. The Russian government has until January 30, 2026, to file a motion to dismiss.

The lawsuit's central legal argument invokes the doctrine of state succession, which holds that sovereign obligations persist through changes in government. At stake is not just the bond value but a broader legal precedent for the potential seizure of frozen Russian sovereign assets in the United States and other Western jurisdictions.

The timing coincides with ongoing Western debates over how to leverage Russia's frozen central bank reserves, estimated at over $300 billion globally, as part of Ukraine war reparations and reconstruction efforts.

To read the complete article, see:
Noble Capital Sues Russia for $200B Over Century-Old Unpaid Tsarist Bonds in U.S. Federal Court (https://indiandefencereview.com/russia-sued-over-tsarist-bonds-noble-capital-claims-200b/)

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