Barclays Bank Plc v VEB.RF

Barclays Bank Plc v VEB.RF

Neither the imposition of sanctions nor the practical difficulties alleged by VEB amount to frustration or render the arbitration agreement incapable of performance; the parties foresaw the risk of sanctions and did not amend the dispute resolution clause. The delay by Barclays in seeking relief was justified by the need to de-risk its position and did not materially prejudice the Russian proceedings or waste court resources. There is no strong reason not to enforce the arbitration agreement and make the interim injunctions permanent.

Parties
Claimant/applicant: Barclays Bank PLC; Defendant/respondent: VEB. RF
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Commercial Arbitration Related Application / Return Date Hearing on Interim Anti Suit and Anti Enforcement Injunctions
Outcome
Interim anti-suit and anti-enforcement injunctions made permanent; application by Barclays granted; VEB's objections dismissed.
Legal Topics
Anti Suit Injunctions, Frustration of Contract, Enforcement of Arbitration Agreements, Sanctions and Access to Justice, Delay in Seeking Injunctive Relief
Arbitration Commercial Law Sanctions Law Anti Suit Injunctions Frustration of Contract Enforcement of Arbitration Agreements Sanctions and Access to Justice Delay in Seeking Injunctive Relief

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Parties

Barclays Bank PLC

Claimant/applicant

VEB. RF

Defendant/respondent

Procedural Posture

Commercial Arbitration Related Application / Return Date Hearing on Interim Anti Suit and Anti Enforcement Injunctions

Legal Issues

  1. 1 Whether the arbitration agreement in the Master Agreement is frustrated or incapable of performance due to sanctions imposed on VEB
  2. 2 Whether delay by Barclays in seeking anti-suit and anti-enforcement injunctions justifies refusal of relief

Ratio Decidendi

Neither the imposition of sanctions nor the practical difficulties alleged by VEB amount to frustration or render the arbitration agreement incapable of performance; the parties foresaw the risk of sanctions and did not amend the dispute resolution clause. The delay by Barclays in seeking relief was justified by the need to de-risk its position and did not materially prejudice the Russian proceedings or waste court resources. There is no strong reason not to enforce the arbitration agreement and make the interim injunctions permanent.

Court Disposition

Interim anti-suit and anti-enforcement injunctions made permanent; application by Barclays granted; VEB's objections dismissed.

Orders

  • The anti-suit injunction and anti-enforcement injunction previously granted are confirmed and made permanent.
  • VEB is restrained from continuing the Russian proceedings in breach of the arbitration agreement.