Havila Kystruten AS & Ors v STLC Europe Twenty-Three Leasing Ltd & Anor [2022] EWHC 3166 – 08 December 2022 (Stephen Houseman KC)

Norwegian Havila group commissioned the building of 4 vessels financed by sale and lease-back arrangements with the Defendants, who were Irish-registered, indirect subsidiaries of a Russian state-owned entity. The Defendants relied on consequences flowing from the imposition of EU Sanctions as constituting contractual Termination Events, requiring “immediate” payment by Havila of Termination Sums; in the absence of such payment, the Defendants invoked contractual Enforcement Events, allowing foreclosure. The Court ruled that there were Termination (not Enforcement) Events and that payment of Termination Sums to the Defendants’ nominated, but frozen, account would constitute good discharge of Havila’s obligations.