Exiled Russian tycoon Boris Mints failed to block a pair of state-run Russian banks from pursuing an $850 million lawsuit against him, in one of the first major UK court tests of its sanctions regime.
(Bloomberg) — Exiled Russian tycoon Boris Mints failed to block a pair of state-run Russian banks from pursuing an $850 million lawsuit against him, in one of the first major UK court tests of its sanctions regime.
A London judge said Friday the trial could go ahead, rejecting Mints’ argument that the sanctions made the case against him unlawful. He faces a fraud suit for his alleged role in the collapse of Bank Otkritie, which he founded, prompting a rescue by the Russian central bank.
The ruling was something of a test of how far non-sanctioned Russian individuals could use UK government measures in their favor. Mints’ lawyers argued that any potential damages could be channeled straight to the Russian government and asked for an indefinite halt.
“It is plainly a case with far wider implications,” Judge Sara Cockerill said as she gave Mints permission to appeal her ruling.
The UK’s sanctions regime has come under intense scrutiny in recent weeks, with a particular focus on government approval for lawyers’ fees. Leaked emails revealed UK officials signed off on legal expenses including a trip to St. Petersburg for a libel claim brought by mercenary leader Yevgeny Prigozhin against a prominent journalist.
Mints had argued that if the court were ultimately to award damages “it could fairly be said that the UK sanctions regime is not fit for purpose.”
But Judge Cockerill disagreed, saying that a final judgment can be entered lawfully and wouldn’t require a government license.
In 2019 Russian lender National Bank Trust PJSC together with Bank Otkritie, owned by the Russian Central Bank, obtained a worldwide freezing order on the assets of Mints and his sons. They allege that Mints defrauded the lenders before their collapse and bailout by the government.
“The Mints family’s application to dismiss the case is a crude attempt to avoid English justice, a spokesperson for the banks said. “We will continue to seek damages and justice against the Mints family.”
A spokesperson for Mints confirmed that the family would appeal.
“We continue to believe that due to the critical role National Bank Trust plays in financing the Putin administration, our hearings against both parties should be stayed until such time when sanctions against the agents of the Russian state are lifted,” he said.
A spokesman for the banks didn’t immediately comment.
(Updates with spokespeople comments in the last two paragraphs)
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