In June 2019, PJSC National Bank Trust (the “First Claimant”) and PJSC Bank Otkritie Financial Corporation (the “Second Claimant”) commenced litigation in the English High Court, claiming substantial damages on basis of alleged conspiracies resulting in uncommercial transactions whereby loans were replaced with worthless or near worthless bonds.

Following the designation of the Second Claimant for purposes of the UK’s Russia-related sanctions regime, the Defendants applied to the court for a stay of proceedings. On 27 January 2023, that application was dismissed in the High Court.

The First to Fourth Defendants brought an appeal against the High Court’s decision which, on October 6, 2023, the Court of Appeal (the “Court”) dismissed.

This memorandum explores the reasoning of the Court’s judgment and its wider implications.