Various governments, under their relevant sanctions regimes, have imposed sanctions and export controls on targets in Russia and Belarus in response to the conflict in Ukraine. This Practice Note is designed to provide a starting point for banking lawyers looking into the implications of the UK sanctions since March 2022 on finance transactions. This Practice Note: • provides introductory information on the different kinds of sanctions—see: What is meant by sanctions? • summarises, or points to how to find, the additional sanctions announced or in place in the UK (and elsewhere)—see: How do I find out what UK, US and EU sanctions there are against Russia and Belarus? • sets out where to find guidance on the impact on finance transactions—see: What steps should financial institutions be taking following the additional measures? • sets out, at a high level, steps to take and points to consider in relation to existing and new lending transactions as a result of the new sanctions—see: How might the new measures impact loan transactions? • sets

Corporate Crime analysis: As reported on this blog, in 2020 the Russian State Duma adopted the Law No 171-FZ ‘to protect the right to access to justice of sanctioned parties’. The law presumes that sanctions adversely affect the position of sanctioned Russian individuals and legal entities in foreign court or arbitral proceedings and create the risk that sanctioned parties will not receive the same level of protection as their opponents. Consequently, Law 171-FZ entitles a sanctioned party to disregard a jurisdiction or arbitration agreement and to ask a Russian state commercial court to decide the dispute. The Russian state commercial courts have exclusive jurisdiction over such a dispute. It is not necessary that the applicant is in fact treated unfairly in the foreign proceedings. For the Supreme Court of the Russian Federation, the imposition of sanctions suffices to render a jurisdiction or arbitration agreement unenforceable. Dr Juergen Mark and Olena Oliinyk of Baker McKenzie consider how to ensure due process of sanctioned parties in court or arbitral proceedings while at the same time enforce the sanctions regime.

ARCHIVED: This Checklist has been archived and is no longer maintained. The final text of the Sanctions and Anti-money Laundering Act 2018 (SAMLA 2018) received Royal Assent on 23 May 2018. Originally proposed in the Queen’s Speech in June 2017, SAMLA 2018 introduced a domestic framework for the implementation and enforcement of international sanctions in the UK following the end of the implementation period. The purpose of SAMLA 2018 was to ensure that, following the end of the implementation period, it can continue to: • impose, update, and lift sanctions provided for by the UN and pursuant to other international obligations • effectively detect and prevent money laundering and terrorist financing, including by implementing internationally recognised standards For information on the sanctions regime under SAMLA 2018, see Practice Notes: The UK sanctions framework under SAMLA 2018 and UK sanctions regimes currently in force. Some of the provisions of SAMLA 2018 came into force straight away. Under SAMLA 2018, s 64 secondary legislation is required to bring several

ARCHIVED: This archived Practice Note provides information on the data protection regime before 25 May 2018 and reflects the position under the Data Protection Act 1998 (DPA 1998). This Practice Note is for background information only and is not maintained. Information Commissioner The DPA 1998 is enforced by the Information Commissioner and their officers at the Information Commission’s Office (ICO). The Information Commissioner reports directly to Parliament. The Information Commissioner's duties are: • to promote good practice and observance of DPA 1998 by data controllers • to publish information and give advice • to develop codes of practice, and • international co-operation: ◦ with the European Commission and supervisory authorities in other European Economic Area (EEA) States ◦ in relation to international obligations of the UK, and ◦ in relation to the Council of Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data The ICO has published a guide to data protection, intended to assist data controllers. Numerous other topic guides are

Restructuring & Insolvency analysis: The company was incorporated in the Cayman Islands and formed part of the China Fortune Land Development Group (the Group), which specialized in property development in the People’s Republic of China (PRC). At the convening hearing, the court made an order convening a sanction hearing with a single class of creditors. In doing so, it had to consider whether the class would be fractured by a category of bondholders whose bonds were held through Russia’s National Settlement Depository or other banks sanctioned as a result of Russia’s invasion of Ukraine (the Blocked Scheme Creditors). The court held that the class would not be fractured in circumstances where the Blocked Scheme Creditors would have their pro rate entitlement to the restructuring consideration preserved, as it would be held on trust for them by the company until the sanctions were lifted. Written by Karl Anderson, barrister at 4 Stone Buildings.

Please supply as much information as possible about this suspected breach. If you require any help to complete this form, please contact [insert, eg your sanctions compliance representative]. Please send/email this form, attaching any associated documents, to [insert, eg your sanctions compliance representative]. 1 General Job title [insert job title] Department/team [insert department or team] Contact number(s) [insert contact number(s)] Email address [insert email address] 2 Information

This Precedent Sanctions breach report register is designed to help you keep a record of suspected sanction breaches in your

1 General information Date [Insert date] Name of person completing this response form and action plan [Insert name] Date sanctions breach report form received [Insert date ] Name of person who submitted the sanctions breach report form [Insert name] [Customer OR Client] name and reference(If applicable) [Insert name and reference] 2 Investigation and result Have you investigated the circumstances as set out in the breach form?Set out steps taken to investigate the circumstances ☐ Yes☐ No[[Insert details]] Has an actual breach been identified? ☐ Yes—continue to section 3☐ No—continue to section 4.1 and explain in detail in the conclusion why no breach has occurred

1 Consider seeking external advice Given the complicated nature of most sanctions regimes; the potential for offences to have been committed across multiple jurisdictions and the complex position in relation to privilege and in-house lawyers, it is often prudent to seek specialist advice from external lawyers as soon as a breach is detected. 2 Cease any activity that could contribute to the breach Cease any activity that could contribute to the breach immediately. Where there is a funds transfer, suspend the transaction but do not return funds to a sanctioned entity or person. If funds have arrived in the UK from a designated

This Practice Note provides guidance in relation to sanction clauses in insurance policies. It explains the effect of sanctions and the purpose of sanctions clauses in the context of insurance. It also provides guidance on drafting sanctions clauses and commentary on the widely used Lloyd's Market Association (LMA) sanction clauses. The Practice Note entitled UK financial and trade sanctions for insurers outlines the sanctions applicable to insurers, the nature of those sanctions, the role of the Financial Conduct Authority, and screening and due diligence for insurers to adopt. Lloyd's Market Association Sanctions Clauses Much of the focus of this Practice Note will be on the market standard wording: the LMA 3100A clause (LMA 3100A) and the LMA 3200 clause (LMA 3200). These were introduced in October 2023 following an LMA consultation on the LMA 3100 clause, which was first issued in 2010. LMA 3100A adopts the same wording as provided for by LMA 3100 but the title was amended by removing the words ‘and exclusion’ to better reflect that

Insurance & Reinsurance analysis: Following a collision between vessels in the Suez Canal, the defendant owners sought security for their claim from the claimant owners, whose vessel had been en route to discharge her cargo in Iran. It was held that the incorporation of a sanctions clause in the letter of undertaking (LOU) offered by the claimant’s insurers did not render this form of security unsatisfactory. The practical ability to effect payment, which is relevant when a nexus with a sanctioned country is established, is an important factor for P&I Clubs to consider when providing security for a claim. It was held, however, that the defendant was under no obligation to accept the LOU, even if it was in reasonably satisfactory form. No such obligation was to be implied into the parties’ Collision Jurisdiction Agreement (CJA). The judge held that, had the parties intended to impose such an obligation, thereby denying a party the right to arrest, this would have been an express term of the CJA. A term would only be implied if, in its absence, the CJA lacked commercial or practical coherence. Written by Daniel Martin, partner at HFW.

1 Sanctions (long form) In this clause 1, the following defined terms shall have the meanings assigned to them: Losses • means all damages, liabilities, demands, costs and expenses[ including all legal and other professional fees, costs and expenses], claims, actions and proceedings[ (including all consequential, direct, indirect, special or incidental loss or punitive damages or loss, fines, penalties, interest and loss of profit or any other form of economic loss (including loss of reputation))]; Sanctioned Activity • means any activity subject to sanctions imposed by a Sanctioning Body; Sanctioning Body • means the United Kingdom, United States of America, United Nations, European Union and any other applicable local, national or multinational government agency, department, official, parliament, public or statutory person or any government or professional body, regulatory or supervisory authority, board or other body responsible for imposing and/or administering sanctions; Sanctioned Entity • means any person or entity which is, or which is owned or controlled directly or indirectly by a person or entity which is, the subject of sanctions imposed by, or on a designated sanctions list published by, a Sanctioning Body, and in this clause 1, the words ‘owned or