Russia's Federal Customs Service dropped its $22.5 billion claim against Bank of New York Mellon Corp. on Thursday, ending a two-year legal battle that highlighted the shortcomings of the Russian legal system.

In a joint statement, the two sides said that the banking company admitted no liability and will pay Russia $14 million "as compensation of trial costs." The banking company said it then would supply trade finance to Russian state banks totaling $4 billion.

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