UK High Court Orders Sanctioned VTB Bank to Pay £500,000 into Court as Security
The UK High Court has ruled that VTB Bank — subject to UK and US sanctions since February 2022 — must pay £500,000 into court as fortification for its cross-undertaking in damages, rather than simply ringfencing funds in its own accounts.
The case arose after VTB obtained a worldwide freezing order in February 2026 against Timur Kuanyshev and his wife Alfiya Askar, in connection with a US$90 million claim in Russia. VTB had initially ringfenced £100,000 at Barclays as fortification. The respondents successfully applied to increase this amount to £500,000 and to have the funds paid directly into court.
The court ordered VTB to apply for the necessary OFSI and/or OFAC licence as promptly as possible, noting that obtaining such a licence could take anywhere between six weeks and eighteen months. The court determined it was preferable to begin the licensing process immediately rather than wait until a formal payment order was issued.
The case arose after VTB obtained a worldwide freezing order in February 2026 against Timur Kuanyshev and his wife Alfiya Askar, in connection with a US$90 million claim in Russia. VTB had initially ringfenced £100,000 at Barclays as fortification. The respondents successfully applied to increase this amount to £500,000 and to have the funds paid directly into court.
The court ordered VTB to apply for the necessary OFSI and/or OFAC licence as promptly as possible, noting that obtaining such a licence could take anywhere between six weeks and eighteen months. The court determined it was preferable to begin the licensing process immediately rather than wait until a formal payment order was issued.
- The judgment did not address whether an additional licence would be required to release the funds from court in the event that a cross-undertaking claim were subsequently made against VTB.
