UK Weekly Sanctions Update - Week of July 8, 2024 | 见解

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.

Russia Sanctions

UK Court further considers ownership and control test and voting rights in insolvency proceedings: On July 10, 2024, in Hellard & others v OJSC Rossiysky Kredit Bank (in liquidation) & others the UK High Court considered an application made by trustees in bankruptcy in relation to whether inter alia (i) certain Russian entities in liquidation were owned or controlled by a designated person; and (ii) if they were, whether those Russian entities could lawfully vote at meetings of the creditors’ committee in the context of the ongoing liquidation. Following consideration of the decisions in Mints and Litasco, the Court considered that the concept of “control” can be broken down into (i) de jure control; (ii) actual present de jure control; (iii) potential future de jure control; and (iv) potential future de facto control. On the facts presented, the Court found there was no evidence of present or future de jure control, nor of actual present de facto control, and that there would be “no easy way” for designated persons to exercise potential future de facto control. The Court also considered that the UK Russia Regulations do not prevent the counting of creditor votes (or the exercise of rights to vote at the creditor committee) in a bankruptcy by a person caught under Regulation 7(4) of the UK Russia Regulations the context of statutory insolvency proceedings. (https://www.bailii.org/cgi-bin/format.cgi?doc=/ew/cases/EWHC/Ch/2024/1783.html&query=(.2024.)+AND+(EWHC)+AND+(1783))
UK Court orders interim removal of company director for breaching Russia sanctions: On July 5, 2024, in Garofalo v Crisp & Ors the UK High Court ordered at an interim stage the removal of a company director after finding that there was a strong prima facie case that he knowingly violated UK sanctions by exporting luxury goods to Russia. (https://www.bailii.org/ew/cases/EWHC/Ch/2024/1737.html#para181)
National Crime Agency (NCA) starts forfeiture proceedings against Russian businessman Petr Aven for suspected breaches of UK Russian sanctions regime: On July 4, 2024, it was reported that the NCA applied earlier this year for a forfeiture order for £1.1 million from Russian billionaire Peter Aven, who, according the to the NCA has “been involved in supporting the Government of Russia” during its war in Ukraine. The NCA claims that the funds represent the “proceeds of crime” and allege that Mr Aven moved the funds in violation of sanctions. A hearing has been scheduled for July 29, 2024 at the Westminster Magistrates’ Court to hear the NCA’s application. (NCA targets oligarch-linked funds in forfeiture attempt - Global Investigations Review; https://www.occrp.org/en/daily/18859-u-k-crime-agency-asks-court-to-permanently-seize-russian-oligarch-s-money)