UK Sanctions Weekly Update – Week of October 9, 2023

In this weekly update, we summarise the most notable updates in the UK sanctions world. If you have any questions in respect of any of the developments set out below, please do not hesitate to contact a member of our London Global and Government Trade team listed above.

1.  Russia Sanctions

• OFSI amends General Licence for payment to energy companies: On October 13, 2023, OFSI amended General Licence INT/2022/2300292 inter alia to allow an individual or company to make certain payments to energy companies for or on behalf of a designated person. (INT.2022.2300292_GL.pdf (publishing.service.gov.uk))
• Price Cap Coalition issues advisory note: On October 12, 2023, the Price Cap Coalition (which includes the G7, the EU and Australia) issued a Maritime Safety advisory for the maritime oil industry and related sectors. The advisory supplements previous regulatory guidance and outlines best practices industry stakeholders can adopt to reduce risks while promoting the safe flow of oil on the market. (Price_Cap_Coalition_Advisory_Maritime_Safety_October_2023.pdf (publishing.service.gov.uk))
• UK Court of Appeal grants anti-suit injunction preventing Russian proceedings in sanctions case: On October 11, 2023, the Court of Appeal allowed an appeal by Deutsche Bank and granted an anti-suit injunction against the proceedings brought by RusChemAlliance LLC in Russia. The dispute concerned non-payment by Deutsche Bank under a guarantee due to the application of EU sanctions. The Court granted the anti-suit injunction on the following grounds: (i) the guarantee contract stated that disputes were to be settled by arbitration in Paris under the ICC rules of arbitration, (ii) the English application was not contrary to French public policy on anti-suit injunctions, (iii) the English court was the proper place to bring the claim, and (iv) there was no good reason not to award the anti-suit injunction. (Deutsche Bank AG v RusChemAlliance LLC [2023] EWCA Civ 1144 (11 October 2023) (bailii.org))
• OFSI extends and amends prior obligations General Licence: On October 10, 2023, OFSI extended General Licence INT/2023/3024200 for a further 6 months, until 21 May 2024. The General Licence permits UK persons who are owed funds or economic resources by a designated person under a contract that was signed prior to that person’s designation to receive the relevant funds or economic resources, subject to certain conditions. The General Licence was also amended to change certain definitions, terms and permissions relating to payments caught by the licence. (INT_2023_3024200_Publication_Notice.pdf (publishing.service.gov.uk))