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Bank of New York Close to Russia Settlement

Bank of New York is close to settling a $22.5 billion lawsuit by the Russian government for up to $14 million, after the parties agreed to hold talks on a trade-financing pact, reports say.

NEW YORK (

TheStreet

) --

Bank of New York Mellon

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(BK) - Get Report

is close to settling a $22.5 billion lawsuit by the Russian government for up to $14 million, after the parties agreed to conduct talks about a trade-financing pact, the

New York Times

and other publications reports.

The bank was sued by trial lawyers in Miami on behalf of the Russian government, seeking to collect damages related to a Justice Department probe into a late 1990s scandal in which a Bank of New York executive was accused of secretly moving $7.5 billion out of the country, the

Times

reports.

Linked to a settlement would be the restarting of a five-year, $400 million trade-finance agreement with Russian state banks, the

Times

reports, citing a person briefed on the matter. The trade-finance pact would resume soon after an agreement is reached, the

Times

adds.

A settlement needs final approval from the Russian government. Russian officials declined to comment on when a decision might come or what it might be, the

Wall Street Journal

reports, but a settlement could come before the next hearing on Oct. 20.

Bank of New York officials declined to comment for the newspapers.

-- Reported by Joseph Woelfel in New York

.

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