# Citi halted financing for Trafigura’s nickel deals in October – Bloomberg
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-02-14
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Citigroup Halts Financing for Trafigua Amid Nickel Fraud
Meta Description: Get the latest on Citigroup halting nickel deals for Trafigura due to fraud involving Indian businessman Prateek Gupta's companies. Find out more here.
URL: https://financedigest.com/citi-halted-financing-for-trafiguras-nickel-deals-in-october-bloomberghtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-02-14t090418z1lynxmpej1d0b9rtroptp4citi-drury-moves-1736814445100-compressed.jpg)

(Reuters) -Citigroup Inc stopped financing nickel deals for commodity trader Trafigura with companies linked to Indian businessman Prateek Gupta on Oct. 27, Bloomberg News reported, citing a court filing.

Trafigura last week said it booked a $577 million charge in the first half of 2023 after discovering that some nickel cargoes it received did not contain the metal in a case of “systematic fraud”.

[Citi’s move](https://www.financedigest.com/take-the-express-move-to-city-living.html "Take The Express Move To City Living") had prompted the commodity trader to send inspectors to check containers that were supposed to ship the metal, Bloomberg News reported late on Monday, adding that it was not clear what led the U.S. [bank to pull financing](https://www.financedigest.com/why-finance-professionals-must-bank-on-a-journey-to-the-cloud.html "Why finance professionals must bank on a journey to the cloud").

Trafigura has said the fraud was committed by a group of companies connected to and controlled by Gupta, [including TMT Metals and companies owned by Gupta’s UD Trading](https://www.financedigest.com/ing-toughens-oil-and-gas-policy-to-include-trade-finance-midstream.html "ING toughens oil and gas policy to include trade finance, midstream") Group.

Trafigura had already sold about $100 million of such cargoes, the report said.

Trafigura and Citi declined to comment. UD Trading Group did not immediately respond to a request for comment.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Kirsten Donovan)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---