Russian nickel producer v. Canadian bank

In 2023, a Russian nickel producer commenced LCIA arbitration for over €30M against a Canadian bank that had issued guarantees for a counterparty’s obligations. In an award dated June 11, 2025, the tribunal rejected the bank’s sanctions argument, as the bank had failed to prove that the claimant was subject to Canadian sanctions, and ordered the respondent to pay the debt under the guarantees. In October 2025, the claimant obtained leave to enforce the award in Hong Kong. On June 3, 2026, the Court of First Instance of the High Court of Hong Kong dismissed the bank’s application to set aside enforcement on public policy grounds. The court did not accept that the risk of criminal prosecution under Canadian sanctions law was real. The court also ordered the bank to pay costs on an indemnity basis.

The Hong Kong court confirmed its pro-arbitration approach and that sanctions against Russian persons do not apply in Hong Kong. One of the few known cases in which a Russian company, amid sanctions restrictions, has successfully enforced an arbitral award in its favor.