Citigroup Loses $270 Million Claim Over Mercuria Repo Metal Deal in China

Citigroup Inc. lost a claim for $270 million from Mercuria Energy Group Ltd. over a metal finance deal that was interrupted by a fraud probe at two Chinese ports.

Judge Stephen Phillips in London said Citigroup hadn’t delivered the metal and should pay damages to Mercuria. He also ruled that the bank is allowed to terminate the agreement and doesn’t have to deliver the copper and aluminum to Mercuria.

The Qingdao and Penglai ports have been under lockdown since Chinese authorities began an investigation into an alleged fraud. Banks and trading firms are fighting to secure assets in the ports, ...