International Trade Today is a Warren News publication.

UK Commercial Court Rejects Notion Bank Avoided Paying Debts Due to Russia Sanctions Compliance

The England and Wales Commercial Court rejected commercial bank UniCredit's claim it is not liable in civil proceedings, even where it otherwise would have been held liable, if it held a "reasonable belief" it was acting in compliance with sanctions…

Sign up for a free preview to unlock the rest of this article

If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.

regulations. The court said this defense did not apply to the bank, forcing UniCredit to pay its debt related to the lease of an aircraft to Russian companies. The court said that while UniCredit believed it was following the U.K.'s Russia sanctions regime by not paying Celestial Aviation Services, UniCredit's real motive was to delay payment to shield its cashflow rather than ensure sanctions compliance.