Arbitration
The Russian Federation v Hulley Enterprises Ltd and others [2026] EWCA Civ 1353
The Court of Appeal, Civil Division, dismissed the respondents’ application to impose conditions on the appellant’s pursuit of its appeal, but granted the respondents’ application for security for costs. The respondents, Hulley Enterprises Ltd, Yukos Universal Ltd and Veteran Petroleum Ltd, sought enforcement of arbitration awards against the Russian Federation and applied for conditions and security for costs of the appeal. The court held there was no compelling reason, pursuant to CPR 52.18(2), to impose conditions on grounds 2-8, since the outstanding costs and interim costs had, by the hearing date, been paid or arrangements made. However, the court rejected the appellant’s argument that it lacked jurisdiction to order security for costs, finding that an application under CPR 25.29 is distinct from, and not constrained by, CPR 52.18(3), and that the authorities relied upon (Spar Shipping and Spicejet) had been misread. The court found, among other things, that there was a real risk the appellant would not pay costs if it lost the appeal and
