UK court ruling adds clarity to ‘purpose and scope’ of Russia Sanctions Regulations
The UK’s High Court has issued a judgment ordering a reinsurance broker to provide documents sought by an aircraft leasing company for its lawsuit involving jets stuck in Russia, and ruled that the broker would not be in breach of the UK’s Russia sanctions in doing so.
Reinsurance brokers McGill and Partners, as First Respondent, had opposed the application for the relevant documents by Aercap, ‘principally based on concerns that provision of the documents by it might contravene applicable sanctions,’ according to the 29 January judgment.
Following the ruling, Alex Potts KC, who acted for McGill, wrote, ‘In his recent judgment in the case of AerCap Ireland Ltd v AIG Europe SA & Ors [2024] EWHC 144 (Comm), Mr. Justice Butcher has clarified the meaning and effect of Regulations 28, 29, and 29A of the Russia (Sanctions) (EU Exit) Regulations 2019, in the context of an application for disclosure of documents by various non-party Reinsurance Brokers under CPR 31.17.
‘Mr. Justice Butcher ordered that relevant reinsurance documents should be disclosed by the Reinsurance Brokers to AerCap for use in the context of AerCap’s aviation insurance litigation in the High Court of England and Wales,’ he posted on the website of the chambers of 4 Pump Court.
‘In doing so, the Court confirmed that the disclosure of documents by a Reinsurance Broker to a non Russian Lessor such as AerCap, pursuant to a Court Order for non-party disclosure, would not amount to a breach of Regulations 28, 29, or 29A,’ he wrote.
AerCap, the world’s largest aircraft lessor, is suing its insurers in London’s High Court (AerCap Ireland Ltd vs AIG Europe SA and Lloyd’s Insurance Company SA) for refusing to indemnify it for 116 aircraft and 23 engines stranded in Russia.
