UK Commercial Court Rejects Notion Bank Avoided Paying Debts Due to Russia Sanctions Compliance

The England and Wales Commercial Court rejected commercial bank UniCredit's claim it is not liable in civil proceedings, even where it otherwise would have been held liable, if it held a "reasonable belief" it was acting in compliance with sanctions regulations. The court said this defense did not apply to the bank, forcing UniCredit to pay its debt related to the lease of an aircraft to Russian companies. The court said that while UniCredit believed it was following the U.K.'s Russia sanctions regime by not paying Celestial Aviation Services, UniCredit's real motive was to delay payment to shield its cashflow rather than ensure sanctions compliance.