CELESTIAL AVIATION SERVICES LTD V UNICREDIT BANK GMBH, LONDON BRANCH (FORMERLY UNICREDIT BANK AG, LONDON BRANCH); CONSTITUTION AIRCRAFT LEASING (IRELAND) 3 LTD AND ANOTHER V UNICREDIT BANK GMBH, LONDON BRANCH (FORMERLY UNICREDIT BANK AG, LONDON BRANCH)

[2024] EWCA Civ 628, Court of Appeal (Civil Division), Lord Justice Males, Lord Justice Snowden, and Lady Justice Falk, 11 June 2024

Contract (letter of credit) – Sanctions – Letters of credit in respect of aircraft leases – Sanctions Regulations preventing confirming bank from paying under letters of credit - Sanctions and Anti-Money Laundering Act 2018, section 44 – Russia (Sanctions) (EU Exit) Regulations 2019, SI 2019 No 855, regulation 28(3)

In connection with civilian aircraft leases by the claimants Celestial and Constitution to Russian companies between 2005 and 2014, standby letters of credit had been issued to the claimants by the Russian bank Sberbank with the defendant UniCredit as the confirming bank.