LLC EuroChem North-West-2 and anr v Société Générale S.A. and ors [2025] EWHC 1938 (Comm)

In an important judgment on the effect of international sanctions, Mr Justice Bright held that the defendant banks were not liable to make payment under bonds (worth over €280 million) which they had issued.

The Court found that the first claimant was both owned and controlled by the Russian oligarch, Andrey Melnichenko (who had been subject to EU sanctions before demands under the bonds had been made). On that basis, the Court concluded that payment under the bonds would: (i) be illegal in the place of performance pursuant to the rule in Ralli Bros; and (ii) contrary to public policy.

The Judgment contains important guidance on identifying the place of performance of obligations under financial instruments (at [441] – [458]) and the meaning of “ownership” (at [260] – [279]) and “control” (at [294] – [305]) for the purposes of EU sanctions.

James Weale acted (with Neil Kitchener KC and Robert Harris) for the successful ING Bank defendants (instructed by a team at Clifford Chance LLP led by Kelwin Nicholls and assisted by Charles Joseph and Nicholas Michalakas).

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James Weale KC has a very busy commercial chancery practice with a focus on domestic and international commercial and trusts disputes.

He is recognised as a leading practitioner in those fields by Chambers & Partners, Legal 500, Chambers Global, Chambers High Net Worth, and Who’s Who Legal, where they describe him as a “brilliant lawyer” and a “Superstar”. He was Chambers & Partners’ Chancery Junior of the Year in 2023.

He regularly appears (both as sole and junior counsel) in the English High Court and has appeared several times in the Court of Appeal. He also has considerable experience in overseas jurisdictions (including as sole counsel), including Bermuda, the DIFC, the BVI, Cayman, Jersey, Guernsey, Gibraltar and Panama.