 [2024] HKCFI 2529, the Court of First Instance granted anti-suit and anti-enforcement injunctions for a German bank (Bank A) to prevent a Russian bank (Bank B) sanctioned by the EU from pursuing and enforcing Russian court proceedings in breach of an HKIAC arbitration clause.

Bank A entered into a foreign exchange agreement with Bank B. Following the sanctions imposed by the EU as a result of the Russia-Ukraine war, Bank A was prohibited from making payments to Bank B. The parties terminated the earlier agreement by a termination agreement (TSA), which contained an HKIAC arbitration clause. After Bank B demanded payment of around €113 million, Bank A refused to pay, citing EU sanctions. Subsequently, Bank B initiated proceedings in Russian courts and obtained judgment.

Bank A applied for a final anti-suit and anti-enforcement injunction to restrain Bank B from pursuing proceedings and enforcing the Russian judgment in breach of the arbitration clause. Mimmie Chan J granted the injunctions. Several points are worth highlighting:

This judgment reaffirms the Hong Kong court’s robust approach in upholding arbitration agreements. Hong Kong remains an arbitration-friendly jurisdiction, notwithstanding proliferating international sanctions.

, instructed by Deacons, for the Plaintiff (Bank A).

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Anti-Suit and Anti-Enforcement Injunctions Against Sanctioned Russian Bank

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