RECENT SUCCESSES OF L&P SANCTIONS PRACTICE

On 26/09/2022, it became known about the unblocking of the accounts of the bank, L&P`s client, from the side of one of the largest investment companies in the Republic of Malta, as well as the “unfreezing” of the bank’s clients assets on illegally blocked accounts.


In February of 2022 the Maltese investment company blocked brokerage accounts of the bank, L&P`s client, justifying this decision with suspicions about the possibility of applying restrictive measures of the European Union to the credit institution due to its indirect corporate connection with Russian “sub-sanctioned” persons. Despite receiving from the credit institution a legal opinion of the sanctions right of L&P, convincingly proving the unreasonableness of applying any restrictive measures to the bank, the Maltese broker refused to resume the provision of services, referring to the right of unilateral refusal to fulfill obligations provided for in the contract, and also unilaterally cut off all communication with the counterparty.


The resolution of the dispute required the joint efforts of the international team of the L&P sanctions law practice and several partners of the GRIMALDI ALLIANCE. The first stage of the appeal against the actions of the Maltese broker was an application to the public authority of the Republic of Malta, authorized to resolve disputes arising in connection with the application of restrictive measures of the EU. In its response, the regulator referred to the lack of authority to consider the appeal on the merits, thereby confirming the position of the Alliance’s attorneys on the absence of legal grounds for the application of restrictive EU measures against the principal bank. The arguments set out in the appeal to the regulator became the basis for an official claim against the Maltese broker with a statement of intention to go to court with a demand for the return of illegally held assets belonging to clients of the L&P`s client and compensation for losses caused by such retention. Shortly after receiving the claim, the broker announced the lifting of restrictions from the credit institution and its readiness to resume operations on accounts in normal mode.


“The positive outcome of this case turned out to be possible thanks to the coordinated work of Moscow and European offices of GRIMALDI ALLIANCE, as well as the Maltese law firm involved in solving such a non-trivial task. Despite the fact that the broker took a very tough position and for a long time refused any interaction with the client of L&P, the analysis of the legislation of the EU and the Republic of Malta conducted by our team and active claim work allowed us to safely settle the dispute in favor of our client at the pre-trial stage”, comments Alexander Linnikov, the leader of Sanctions law practice: “Another replenishment of our “piggy box” of won cases – the best confirmation of the highest quality of legal assistance provided by us, based on an individual approach to each client and attention to even the most insignificant details at first glance”.