[ad_1]
Attempts to jail or fine Oleg Deripaska for alleged contempt of court have been delayed after London’s High Court heard that lawyers set to represent the Russian tycoon raised the prospect of their legal fees exceeding the £500,000 limit imposed by the UK sanctions regime.
Deripaska, who founded metals group EN+, has been the subject of US government sanctions since 2018 due to his alleged close ties to the Kremlin, although in 2019 he described such allegations as “filthy lies”.
The UK government imposed sanctions on Deripaska in March after Russia invaded Ukraine, calling him a “pro-Kremlin oligarch”.
A commitment petition brought against Deripaska by her husband Vladimir Chernukhin, a Conservative Party donor and former deputy finance minister under President Vladimir Putin who is now in Britain, was due to be heard in the High Court on Monday.
Chernukhin alleges that Deripaska breached legal obligations after a high-profile legal dispute between the two over land ownership in Moscow. He has applied for Deripaska to face contempt of court proceedings, which, if successful, could see the oligarch jailed or fined.
But the High Court was told on Monday that Deripaska was not present or legally represented at the hearing – although it has lined up law firm Peters & Peters to act for him in the case.
The license has now been granted by the Treasury’s Office of Financial Sanctions Implementation (OFSI), allowing payment of his legal costs.
The government has placed 1,200 individuals and entities under sanctions as part of the Russia sanctions regime since February, but OFSI has the right to issue licenses so that sanctioned individuals can pay their legal fees.
Richard Lysak KC, representing Chernukhin, read out to the court letters from Peters & Peters, which said the £500,000 limit set by OFSI may not be enough for Deripaska’s upcoming three-day trial.
The letters also questioned whether a separate license from the US-based Office of Foreign Assets Control (Ofac) might be required as payments might require a bank with US connections.
Lisak told the court that the £500,000 limit was a “pretty war chest” to cover any legal fees and that the sum was “enough to enable Mr Deripaska to have a fair trial and defend himself”.
Mr Justice Knowles said he would adjourn the hearing, which began this week, until next March.
Peters & Peters did not immediately respond to a request for comment. A spokesman for Deripaska said that given the court’s decision to proceed with the case “it would only be appropriate if Mr Deripaska was allowed to defend himself without restriction”.
Separately, the Solicitors Regulation Authority, which oversees solicitors working in England and Wales, said on Monday it was concerned that Russian oligarchs and other wealthy suitors had used so-called strategic litigation against public partnerships to silence critics.
Ministers have promised to bring in legislation to crack down on wealthy individuals or companies seeking to use slapps, which enable claimants to evade scrutiny and financially exhaust opponents who raise issues of public importance.
“Proceedings must proceed fairly, and that means representing your client’s interests does not override the courts’ wider public interest responsibilities and duties,” the SRA said.
[ad_2]
Source link
