A rare case where sanctions did not become an insurmountable obstacle to access to justice. The Eastern Caribbean Supreme Court of Appeal allowed Alfa-Bank to continue its lawsuit against Kipford Ventures, a company registered in the British Virgin Islands. Moreover, the court froze the company's assets worth $142 million.
The story began in 2017 when the bank issued a $140 million loan to businessman Dmitry Usanov to purchase a coal mine from the Ananyev brothers. Two years later, the mine went bankrupt, and the bank suspected that the deal was not as transparent as it seemed. Usanov allegedly gave false assurances about the quality of the asset, and the Ananyevs and Kipford may have been involved in a conspiracy. $48 million of the loan went directly to Kipford's accounts. So the bank filed a lawsuit in the BVI High Court, seeking to freeze the company's assets.
But the first instance refused the claim, citing Alfa-Bank's sanctioned status. The court decided that even if a positive decision were made, it would not be enforced due to sanctions. The proceedings were stayed. The bank did not give up and appealed this decision.
The appeal sided with the plaintiff. The judges pointed out that an indefinite stay of proceedings violates the right to access to justice. They referred to the UK sanctions regulations, which allow a court decision in favor of sanctioned persons if they obtain a special license for its enforcement. In addition, the appeal emphasized that at the stage of interim relief, it is not necessary to prove that the case will be won with a probability of more than 50%.
As a result, Kipford Ventures was prohibited from disposing of assets without the bank's consent, and the assets themselves were frozen at $142 million. This case shows that even in difficult conditions of sanctions pressure, one can achieve protection of one's interests in foreign jurisdictions. The main thing is to know the legal tools and be prepared for lengthy disputes.
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