LLC EUROCHEM NORTH-WEST-2 AND ANOTHER V SOCIÉTÉ GÉNÉRALE SA AND OTHERS

[2025] EWHC 1938 (Comm), King's Bench Division, Commercial Court, Mr Justice Bright, 31 July 2025

Sanctions – Demand bonds – Demand bonds for construction of fertiliser plant in Russia – Construction company withdrawing following sanctions against founder of buyer of plant – Banks refusing to pay under bonds due to sanctions – Assignment of proceeds of bonds from Russian to Swiss entity – Meaning of "owned or controlled" by designated person – Council Regulation (EU) No 269/2014, article 2 – Council Regulation (EU) 833/2014, article 11

The first claimant EC NW2 was a Russian company created for the purpose of building a new fertiliser plant in Russia. Its Italian contractor T had secured financing from the defendant European banks in the form of demand bonds.