Thomas & Ors v PJSC National Bank Trust [2025] EWHC 75 (Ch) (23 January 2025)

Thomas & Ors v PJSC National Bank Trust [2025] EWHC 75 (Ch) (23 January 2025)

NBT is not a designated person and is not controlled by a designated person under Regulation 7(4) based on current evidence and OFSI guidance; trustees may distribute funds to NBT via Steptoe LLP, subject to ongoing monitoring and notification to OFSI. Regulation 58(5) exemption applies as obligations arose before designation.

Citation
[2025] EWHC 75 (Ch)
Parties
Applicant: Edward Thomas; Applicant: Matther Carter; Applicant: Ann Nilsson; Bankrupt: Nikolay Fetisov; Bankrupt: Ilya Yurov; Interested Party: PJSC National Bank Trust
Jurisdiction
England and Wales
Judgment Date
23 January 2025
Procedural Posture
Bankruptcy Application / Application for Directions Under Section 303 Insolvency Act 1986
Outcome
application granted
Legal Topics
Financial Sanctions, Ownership and Control Under Sanctions Regime, Distribution to Creditors, Regulation 7(4) Russia (sanctions) (eu Exit) Regulations 2019, Regulation 58(5) Exemption, Court's Jurisdiction for Declaratory Relief
Insolvency Sanctions Bankruptcy Financial Sanctions Ownership and Control Under Sanctions Regime Distribution to Creditors Regulation 7(4) Russia (sanctions) (eu Exit) Regulations 2019 Regulation 58(5) Exemption +1 more

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Parties

Edward Thomas

Applicant

Matther Carter

Applicant

Ann Nilsson

Applicant

Nikolay Fetisov

Bankrupt

Ilya Yurov

Bankrupt

PJSC National Bank Trust

Interested Party

Procedural Posture

Bankruptcy Application / Application for Directions Under Section 303 Insolvency Act 1986

Legal Issues

  1. 1 Whether trustees in bankruptcy can lawfully distribute funds to PJSC National Bank Trust given UK sanctions regime
  2. 2 Whether NBT is controlled by a designated person under Regulation 7(4)
  3. 3 Whether Regulation 58(5) exemption applies to distributions arising from obligations predating designation

Ratio Decidendi

NBT is not a designated person and is not controlled by a designated person under Regulation 7(4) based on current evidence and OFSI guidance; trustees may distribute funds to NBT via Steptoe LLP, subject to ongoing monitoring and notification to OFSI. Regulation 58(5) exemption applies as obligations arose before designation.

Court Disposition

application granted

Orders

  • Applicants permitted to make distributions by way of dividend of funds in the bankruptcies due to NBT by electronic transfer to Steptoe LLP client account.
  • Trustees to deal with NBT on basis it is not a designated person and not controlled by any designated person unless new evidence arises.