As previously reported, for nearly two decades Agudas Chasidei Chabad has been attempting to recover from the Russian government two expropriated collections of valuable Jewish religious books and manuscripts. In 2013, the D.C. federal district court held the Russian government and three of its agencies in civil contempt, and imposed sanctions of $50,000 per day, for not complying with a 2010 default judgement ordering it to return the materials. Plaintiffs have been attempting to find Russian assets to satisfy the sanctions by issuing subpoenas to various entities. In Agudas Chasidei Chabad of United States v. Russia Federation, (DC Cir., Dec. 3, 2021), the D.C. Circuit Court of Appeals refused to quash subpoenas directed at several Russian entities, including State Development Corp VEB.RF. (Background). At the same time that an appeal to the U.S. Supreme Court was being planned, Russia began aggressive moves toward Ukraine. This led the U.S. to impose sanctions on VEB.RF. (Department of Treasury Press Release, Feb. 22, 2022). Now, as reported by Reuters, VEB.RF's lawyers in the litigation with Chabad, the global firm of Freshfields Bruckhaus Deringer, announced on Monday that it is ending its representation of VEB.RF. On Monday, the law firm filed a Motion (full text) with the D.C. Circuit seeking a stay of proceedings until VEB has obtained substitute counsel.
