High Court declines to vary interim payment order despite sanctions concerns

The High Court has rejected an application by a company, whose ultimate beneficial owner was a designated person under UK and US sanctions, to vary an interim payment order to delay payment until it obtained the necessary licences from UK and US sanctions enforcement agencies: Celestial Aviation Trading Ireland Ltd & Ors v Volga-Dnepr Logistics B.V. [2025] EWHC 1156 (Comm).

The decision illustrates the extent to which concerns about sanctions breaches will influence the court's decision whether to vary an interim payment order. It is a reminder that the court's discretion under CPR 25.20(6)(b) to vary such orders will only be exercised for principled reasons such as, for example: (i) a material change of circumstances since the original order; or (ii) where the original decision was based on a material misstatement of fact (innocent or otherwise).  

The decision highlights the difficulty that sanctioned parties face in seeking a variation of a court order requiring payment if the court was already aware of their designation as a sanctioned person and the potential impact of sanctions on their ability to comply. Reiterating sanctions challenges, without new evidence or developments, is unlikely to persuade the court to exercise its discretion to vary the order. Additionally, the court will not favour delays by sanctioned parties in addressing their compliance obligations, such as obtaining the necessary licences from sanctions agencies.

For more information see this post on our Banking Litigation Notes blog.