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Sanctioning non-payment: what’s caught by the wide net of the UK regime? Brónagh Adams & Harriet Campbell stress the need for caution following Celestial Aviation v Unicredit
- The Supreme Court’s decision in Celestial Aviation v UniCredit Bank GmbH has emphasised the broad scope of the UK sanctions regime and the importance of its public purpose.
- In view of the volatile nature of global politics, compliance with the ‘wide net’ UK sanctions regime is critical.
- While financial institutions may be able to rely on the ‘safety valve’ of a licensing system, few protections—and many risks—remain for organisations caught in the middle of a sanctioned supply chain.
In Unicredit Bank GmbH, London Branch v Celestial Aviation Services Ltd [2026] UKSC 10, the Supreme Court delivered a clear verdict on the broad scope of UK sanctions against Russia. The ‘blunt instrument’ of the Russian sanctions regime casts its net wide. Its purpose is to protect vital public interests, putting pressure on Russia by disrupting its strategic industries.
This judgment addresses the Russian sanctions regime.
