R. (on the application of OJSC Rosneft Oil Co) v HM Treasury [2015] EWHC 248 (Admin)

The case involves a judicial review challenge brought by Rosneft against the FCA and others relating to EU sanctions imposed in response to Russia’s involvement in destabilising the situation in Ukraine.

Rosneft’s challenge puts in issue both the validity and the interpretation of Council Decision 2014/512 and Council Regulation 833/2014. James McClelland (with Sonia Tolaney QC) acted for the FCA defending its interpretation of the nature and scope of the restrictions on sanctioned entities accessing the EU capital markets.

The Divisional Court (Beatson LJ and Green J) adjourned the proceedings in order to refer questions of EU law to the European Court (CJEU). However, in doing so the Court commented as follows:

“Both Rosneft and the FCA made detailed submissions to this Court as to the correctness of their respective positions. The provisional view of the High Court is that the FCA is correct in its analysis of Article 5(2) and that its construction is supported by the language of the Regulation, and by a consideration of the underlying purpose and objectives of the sanctions measures.”

James was instructed by Kingsley Napley LLP (Adam Chapman and Katherine Pymont).

A copy of the judgment may be found here.