A group of European banks has been ordered not to redeem EUR280 million of on-demand bonds owned by the Russian fertiliser group EuroChem, because the EuroChem companies’ true owner is a Russian national whose assets are frozen under EU sanctions. The bonds are governed by English law, so the case was heard in the England and Wales High Court, which confirmed that indirect ownership is sufficient to trigger the asset-freezing provisions under Regulation (EU) No. 269/2014. It also determined that a beneficiary under a discretionary trust is considered the owner of the trust’s assets for the same regulation’s purposes (LLC EuroChem North-West-2 v Société Générale, 2025 EWHC 1938 Comm).
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