What happened
In 2022, RusChemAlliance LLC (a joint venture of Gazprom and RusGazDobycha) commenced proceedings in the Russian courts under Article 248.1 of the Russian Arbitrazh Procedure Code against Linde Engineering and the guarantor banks UniCredit, Deutsche Bank, and Commerzbank, despite agreements providing for ICC arbitration in Paris (for the guarantees) and HKIAC arbitration in Hong Kong (for the Linde contract). The banks applied to the High Court of England and Wales, and Linde to the High Court of Hong Kong, for orders restraining the Russian proceedings. The banks obtained injunctions from English courts at various levels, although UniCredit itself later applied to the English court to discharge the injunction granted in its favor, because a Russian arbitrazh court had issued a counter-injunction against it under threat of a €250M fine. In September 2023, the Court of First Instance of the High Court of Hong Kong dismissed RusChemAlliance’s application to set aside a similar injunction obtained by Linde and confirmed that the arbitration agreement was binding. The dispute has continued in Germany: Deutsche Bank brought a €260M claim against Linde, and in July 2026 the Frankfurt Regional Court (Judge Corinna Distler) indicated a preliminary view in the bank’s favor, stating that sanctions are not a ground for non-performance of obligations. A final decision is expected no earlier than October 20, 2026, and may be appealed.
Why it is notable
The first case in which the UK Supreme Court confirmed the power of English courts to restrain foreign proceedings in support of arbitration where there is no connection with England other than English governing law. The first known case in which a Hong Kong court granted a similar injunction restraining Russian proceedings brought under Article 248.1 of the Russian Arbitrazh Procedure Code. The dispute also shows the next stage of the conflict: guarantor banks passing the amounts they paid on to the contractor itself in national courts.