Retaining the principle of the continuity of the Russian state, the French judiciary has just returned the Orthodox cathedral of Nice, built by the Romanovs, to Russia. Under these circumstances, can I not demand the repayment of all loans contracted by the Tsarist Empire before the 1917 Revolution?
A historical reminder is necessary before providing you with an answer. Between 1890 and 1914, Imperial Russia borrowed heavily from French savers. After the revolution, the USSR, citing the lack of state continuity, refused to honor the debts of Romanov Russia. According to the International Federation of Russian Loan Holders, unpaid capital and interest since 1917 would today represent a debt of 25 billion euros. To end the lingering conflict that has always pitted French savers against Russia, an agreement was reached in 1997 between France and Russia. In exchange for Russia paying a compensation of 400 million dollars to bondholders, France renounced any claims against Moscow. However, according to some legal experts, the claims of Russian bondholders were not extinguished.
And this is where the case of the Saint-Nicolas Cathedral in Nice comes in. By a decision of the Nice tribunal de grande instance on January 20th, Russia was recognized as the owner of the cathedral. To obtain it, its lawyers invoked the principle of “state continuity” after the Tsarist Empire and the Soviet Union, guaranteeing its continuous ownership of the site despite the existence of a very long-term lease in favor of a religious association. With the continuity of the Russian state now recognized by the French judiciary and the Moscow authorities, the situation changes for the bondholders.
There are still 316,000 of them, and they are considering, through their association, to request the repayment of the loans, as the 1997 agreement has become void due to the Nice tribunal decision. Initially, they wish to obtain the seizure of the Saint-Nicolas Cathedral. If the association is successful, the door will be opened to an action for the repayment of Russian loans. Provided that the highest authorities of both states reach a satisfactory compromise.
