Barclays Bank PLC v VEB.RF [2024] EWHC 1074 (Comm) (10 May 2024)

Barclays Bank PLC v VEB.RF [2024] EWHC 1074 (Comm) (10 May 2024)

Neither frustration nor delay constitute strong reasons to refuse enforcement of the arbitration clause; the parties foresaw sanctions risk and did not amend the dispute resolution clause; practical impediments caused by sanctions do not amount to denial of access to justice or radically different performance; delay did not materially interfere with Russian proceedings or cause waste; the anti-suit and anti-enforcement injunctions should be made permanent.

Citation
[2024] EWHC 1074 (Comm)
Parties
Claimant/applicant: Barclays Bank PLC; Defendant/respondent: VEB. RF
Jurisdiction
England and Wales
Judgment Date
10 May 2024
Procedural Posture
Commercial Court Claim / Return Date Hearing for Interim Anti Suit and Anti Enforcement Injunctions
Outcome
Interim anti-suit and anti-enforcement injunctions made permanent.
Legal Topics
Anti Suit Injunction, Frustration, Delay, Sanctions Enforcement, Arbitration Agreement, Jurisdiction Challenge
Arbitration Sanctions Contract Law Anti Suit Injunction Frustration Delay Sanctions Enforcement Arbitration Agreement +1 more

Case Brief

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Parties

Barclays Bank PLC

Claimant/applicant

VEB. RF

Defendant/respondent

Procedural Posture

Commercial Court Claim / Return Date Hearing for Interim Anti Suit and Anti Enforcement Injunctions

Legal Issues

  1. 1 Whether the arbitration agreement is frustrated or incapable of performance due to sanctions
  2. 2 Whether delay in seeking anti-suit injunction justifies refusal of relief
  3. 3 Whether the Russian proceedings breach the arbitration clause

Ratio Decidendi

Neither frustration nor delay constitute strong reasons to refuse enforcement of the arbitration clause; the parties foresaw sanctions risk and did not amend the dispute resolution clause; practical impediments caused by sanctions do not amount to denial of access to justice or radically different performance; delay did not materially interfere with Russian proceedings or cause waste; the anti-suit and anti-enforcement injunctions should be made permanent.

Court Disposition

Interim anti-suit and anti-enforcement injunctions made permanent.

Orders

  • Permanent anti-suit injunction granted against VEB restraining Russian proceedings.
  • Permanent anti-enforcement injunction granted against VEB restraining enforcement of Russian judgment.