Another anti-suit decision linked to Russian sanctions, this time from Hong Kong. The Hong Kong Court ruled in favour of a German bank, granting an order to stop a Russian bank from taking legal action in Russia contrary to an arbitration clause. The Russian bank claimed the case involved "acts of state" and "foreign affairs", but the court disagreed. The court also dismissed the Russian bank's arguments against the order, including concerns about a fair hearing and public policy. Read more here: https://lnkd.in/eHUD8BuV #arbitration #internationalarbitration #disputeresolution #banking #sanctions #law #lawyers #hsf

In a sanctions-related dispute between a German and a Russian bank, the parties had concluded a settlement agreement. The settlement agreement provided for HKIAC arbitration in Hong Kong. When the German bank refused to pay the settlement amount to the Russian bank because such payment was prohibited under EU sanctions law, the Russian bank started court proceedings in Russia before a Russian arbitrazh court. It thereby relied on Article 248.1 of the Russian Arbitrazh Procedure Code which allows Russian arbitrazh courts to ignore foreign arbitration agreements and exercise exclusive jurisdiction over sanctions-related disputes. Upon the application of the German bank, the Hong Kong Court of First Instance granted an anti-suit injunction against the Russian bank, thereby confirming the principle that the courts in Hong Kong will not accept that a party institutes foreign court proceedings in breach of an arbitration agreement. Read this instructive article authored by my colleagues Philipp Hanusch, James Ng and Helen Chui to learn the details.

The rise in Russia-related disputes before the HK courts reflects the growing trend for parties to agree on HK arbitration for Russia-related disputes. In the recent case of Bank A v Bank B [2024] HKCFI 2529, the Court of First Instance considered an application for an anti-suit injunction against a Russian bank which commenced court proceedings in Russia in breach of an arbitration agreement providing for HK arbitration. The bank challenged the court’s jurisdiction by invoking the foreign affairs provision under the Basic Law, Hong Kong’s “mini-constitution”, in light of sanctions imposed by the EU. Alternatively, it argued that there were strong reasons against the grant of the injunction and related relief. The court dismissed the jurisdictional challenge and granted the ASI and related relief. This decision provides useful guidance to parties who have agreed to HK arbitration for Russia-related disputes. #sanctions #russia #hongkong #ofac #eu #uk #arbitration #disputeresolution

The rise in Russia-related disputes before the HK courts reflects the growing trend for parties to agree on HK arbitration for Russia-related disputes. In the recent case of Bank A v Bank B [2024] HKCFI 2529, the Court of First Instance considered an application for an anti-suit injunction against a Russian bank which commenced court proceedings in Russia in breach of an arbitration agreement providing for HK arbitration. The bank challenged the court’s jurisdiction by invoking the foreign affairs provision under the Basic Law, Hong Kong’s “mini-constitution”, in light of sanctions imposed by the EU. Alternatively, it argued that there were strong reasons against the grant of the injunction and related relief. The court dismissed the jurisdictional challenge and granted the ASI and related relief. This decision provides useful guidance to parties who have agreed to HK arbitration for Russia-related disputes. Learn more about it on Baker McKenzie’s Global Arbitration News blog. https://lnkd.in/emauu4tU

The rise in Russia-related disputes before the HK courts reflects the growing trend for parties to agree on HK arbitration for Russia-related disputes. In the recent case of Bank A v Bank B [2024] HKCFI 2529, the Court of First Instance considered an application for an anti-suit injunction against a Russian bank which commenced court proceedings in Russia in breach of an arbitration agreement providing for HK arbitration. The bank challenged the court’s jurisdiction by invoking the foreign affairs provision under the Basic Law, Hong Kong’s “mini-constitution”, in light of sanctions imposed by the EU. Alternatively, it argued that there were strong reasons against the grant of the injunction and related relief. The court dismissed the jurisdictional challenge and granted the ASI and related relief. This decision provides useful guidance to parties who have agreed to HK arbitration for Russia-related disputes. Learn more about it on Baker McKenzie’s Global Arbitration News blog.

The rise in Russia-related disputes before the HK courts reflects the growing trend for parties to agree on HK arbitration for Russia-related disputes. In the recent case of Bank A v Bank B [2024] HKCFI 2529, the Court of First Instance considered an application for an anti-suit injunction against a Russian bank which commenced court proceedings in Russia in breach of an arbitration agreement providing for HK arbitration. The bank challenged the court’s jurisdiction by invoking the foreign affairs provision under the Basic Law, Hong Kong’s “mini-constitution”, in light of sanctions imposed by the EU. Alternatively, it argued that there were strong reasons against the grant of the injunction and related relief. The court dismissed the jurisdictional challenge and granted the ASI and related relief. This decision provides useful guidance to parties who have agreed to HK arbitration for Russia-related disputes. Learn more about it on Baker McKenzie’s Global Arbitration News blog.

A German bank clinched victory against a sanctioned Russian bank in the Hong Kong Court of First Instance, securing anti-suit injunctions over a €113 million settlement dispute. 🍿 𝐖𝐡𝐚𝐭 𝐇𝐚𝐩𝐩𝐞𝐧𝐞𝐝? The saga began with a 2003 ISDA Master Agreement (“𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭“) for forex and derivatives transactions between the German bank and the Russian bank. Post-Russian invasion of Ukraine in 2022, the EU sanctioned the Russian bank on the same day that both banks concluded a settlement agreement covering the termination of their rights and obligations under all the outstanding transactions covered by the Agreement (and also included HKIAC arbitration clause). When the Russian bank demanded payment, the German bank cited EU sanctions as a roadblock. In response, the Russian bank commenced legal proceedings in Moscow, securing judgment for the full amount and attempting to freeze the German bank's assets. Meanwhile, the German financial regulator neutered the Russian bank's control over its German subsidiary, appointing a trustee who initiated voluntary liquidation. 👀 𝐓𝐋;𝐃𝐑 The Hong Kong courts are very willing to enforce arbitration agreements, and “acts of state” defence is not always an acceptable defence! ** 🤫 To read the latest OIA edition: https://lnkd.in/gHxf2yxW 🤫 And if you like what you're reading, subscribe to Overheard in Asia to get the latest APAC disputes & arbitration news every 2 weeks in 3 minutes! -https://lnkd.in/gHFG4gvh #arbitration #lawyer #legal #disputeresolution

Bulgaria passed legislation for the adoption of the #Euro - as the 21st member state of the #eurozone. The law gives businesses and citizens information on how the changeover to the European currency will take place. Penkova & Partners Law Firm has prepared a legal update for you to understand the main aspects of this law and how it will affect you. Reading this legal update is essential for both citizens and businesses to ensure a smooth and informed transition to the euro. It helps them understand their rights, obligations, and protections, avoid financial pitfalls, and comply with the law during this significant economic change in #Bulgaria. 🎯 Find the full law briefing in our news section: https://lnkd.in/dYqgK9Qi You can also download the infographic ⬇

KAZAKHSTAN: IMPORTANT UPDATES IN FRAMES OF TRANSFER PRICING The Head of the Republic signed the Law of the Republic of Kazakhstan "On introducing amendments and additions to some legislative acts of the Republic of Kazakhstan on transfer pricing". Read more on our website: https://lnkd.in/efDw_2GF #fchain #global #kazakhstan #business #economy #transferpricing

In selecting a jurisdiction for transactions it is important not to overlook special tax requirements and restrictions on transactions with foreign counterparties that are imposed directly by Russian law. They apply to transactions with countries that are “blacklisted” by the Russian Ministry of Finance, the Central Bank, the Federal Tax Service and the Federal Financial Monitoring Service. Ruslan Vasutin, Damir Zinnatullin and Semen Sysuev summarise the tax-related restrictions in our legal update: https://lnkd.in/eNQp8MpZ #russia #sanctions #tax