MOSCOW, December 7 - RAPSI, Dmitry Shchitov. A court of appeals has upheld the dismissal of the National Reserve Bank's (NRB) lawsuit against the Federal Security Service (FSB) for $11.23 million in moral damages, the Russian Legal Information Agency (RAPSI/ rapsinews.com) reported from the courtroom on Wednesday.

The NRB is controlled by Russian oligarch Alexander Lebedev

The bank is appealing the Moscow Commercial Court's decision to dismiss NRB's claim.

The bank believes that FSB Cpt. Volotovsky distributed defamatory information about the bank in his report. Volotvsky stated that NRB illegally drained funds from the Rossiysky Capital bank. In its suit, the bank demanded that the service publicly refute the information.

In November 2010, police officers searched the bank's head office and two subsidiary offices and seized their documents. The search was part of a criminal case on the embezzlement of five billion rubles ($160.61 million) from the Rossiysky Capital bank, reorganized by the NRB. Lebedev estimated the damage from the investigation at 1.5 billion rubles ($48.15 million).

The bank says information about the searches was leaked into the press and the bank failed to regain its clients' trust, which it developed during the 15 years since its establishment.