17 Oct 2022 18:42

UK's OFSI allows sanctioned persons from Russia to pay for proceedings in int'l arbitration in London

MOSCOW. Oct 17 (Interfax) - Russian and Belarusian companies that are subject to UK sanctions will be able to pay legal fees as part of proceedings in the London Court of International Arbitration (LCIA).

The LCIA, in turn, has the right to accept the payments to cover legal costs, as well as to use funds previously deposited by blocked persons.

The corresponding license was issued on Monday by the UK's Office of Financial Sanctions Implementation (OFSI) of the UK Treasury, and the license is in perpetuity.

The LCIA is a popular arbitration platform in transactions involving parties from different jurisdictions. The place of consideration of possible disputes is prescribed upon conclusion of contracts. Among the so-called Russian cases before the LCIA, there are also proceedings involving sanctioned persons. For example, in June of this year, the LCIA ruled on the claim of Switzerland's New Stream Trading AG against Sberbank , which has been subject to UK sanctions since early April.