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Sanctions challenges: Court of Appeal (England and Wales) confirms high bar for de‑listing, upholds yacht detention, and clarifies proportionality review under SAMLA 2018 and Russia (Sanctions) Regulations

Published on: 20 March 2024

Published by a LexisNexis Corporate Crime expert
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Dalston Projects Ltd and others v Secretary of State for Transport; Shvidler v Secretary of State for Foreign, Commonwealth and Development Affairs [2024] EWCA Civ 172 What are the practical implications of this case?

This judgment will be of note to sanctions practitioners and, more broadly, to anyone with an interest in public law. Put plainly, the effect of the decision is that designated individuals (or those owning designated assets) must overcome an exceptionally demanding barrier if they are to persuade the court to lift their designation. Delivering the court’s reasons, Lord Justice Singh held that, once a person falls within the (wide) definition of an “involved person” for the purposes of the Russia (Sanctions) (EU Exit) Regulations 2019, SI 2019/855, reg 6, there is a sufficient rational link for the classic proportionality exercise in Bank Mellat to be satisfied (see Bank Mellat v HM Treasury (No 2) [2013] UKSC 39). In essence, satisfaction of that statutory description supplies the necessary rational connection demanded by the Bank Mellat analysis, providing the basis upon which designation may properly be maintained pending any further review if challenged in court...

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