O v C [2024] EWHC 2838 (Comm) - KBD

Immediately after shipment on board O’s Vessel of a cargo of naptha, Charterers (‘C’) became subject to US sanctions. O purportedly terminated the C/P and in Arbitration sought an order for sale of the cargo, with the proceeds payable to a blocked US a/c in accordance with a US license. C opposes the sale and claims damages for conversion of its cargo, O (it says) being outside the reach of US sanctions. C contends that proceeds of sale should be paid into the English Court in support of the arbitration. The Court agreed that given the underlying arbitration, payment to Court was the appropriate option, outweighing O’s concerns about US prosecution, which the Court assessed as very low.