Commodities in Focus Weekly: Issue 37

Celestial Aviation Services Limited and Constitution Aircraft Leasing (Ireland) 3 Limited and another v UniCredit Bank AG (London Branch)¹ – Sanctions imposed against Russia do not excuse compliance with standby letters of credit

The Commercial Court addressed the impact of sanctions imposed against Russia on payment obligations under standby letters of credit.

Facts

The Court heard two claims together: the Claimants, Celestial Aviation Services ("Celestial") and Constitution Aircraft Leasing (Ireland) 3 Limited and Constitution Aircraft Leasing (Ireland) 5 Limited (together, "Constitution"), were Irish aircraft lessors seeking payment as beneficiaries under standby letters of credit (the "LCs").

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¹ [2023] EWHC 663 (Comm) (23 March 2023) and [2023] 1071 (Comm) (5 May 2023)