The UK is one of many countries that have introduced extensive sanctions against Russia, its individuals and entities in light of the ongoing military action in Ukraine.
An area where the UK sanctions regime may have significant impact, but which is not often discussed, is the effect on proceedings in the English court involving sanctioned Russian parties. Whilst UK sanctions generally do not restrict court proceedings against Russian individuals or entities subject to sanctions, the effect of the overall sanctions regime means that pursuing such claims may involve practical difficulties, such as delays to the proceedings or issues with enforcement.
Of particular relevance to English court proceedings is the targeted freezing of assets, which restricts access to funds and economic resources of Designated Persons (whether individuals or entities). The asset freeze restrictions are very wide and, among other things, prevent a Designated Person from accessing funds, without a licence, to make payments related to court proceedings, including legal fees, court fees and amounts payable under court orders.
Another major difficulty that parties may face in proceeding against Designated Persons is the ability to enforce money judgments. Subject to licensing, the UK asset freeze would restrict enforcement against the assets of the Designated Persons in the UK and would prevent a UK person from receiving the assets of a Designated Person.
As the cases against Russian sanctioned parties continue to unfold, it is to be expected that the parties and the courts will have to deal with an increasing number of procedural issues arising out of the sanctions regime.
Those who wish to pursue claims against sanctioned Russian persons in the English courts therefore need to understand how to navigate the relevant sanctions in order not to be caught off-guard by such difficulties.
This post on our sister blog, Litigation Notes, examines these issues in detail.
Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.