Companies and individuals alike have struggled to keep on top of the increased sanctions risks emanating from the heightening of international tensions in recent years. Recently, two English law cases, Havila Kystruten AS and Others v. STLC Europe Twenty Three Leasing Ltd and Another [2022] EWHC 3166 (Comm) (referred to as the Havila case) and Gravelor Shipping Ltd v. GTLK Asia M5 [2023] EWHC 131 (known as the Gravelor case) shed light on the challenges encountered by contracting parties in situations where the lessor is sanctioned, encompassing issues such as lease termination, security enforcement, and payment. The insights from these cases hold significance for leasing companies and charterers worldwide.

In a recent alert, our lawyers discuss how the impact of sanctions on the operation of a contract and the applicability of sanctions provisions are demonstrated by the Havila case and the Gravelor case, highlighting the significance of the way the provisions are drafted and the circumstances of the transaction.