Court allows Cypriot company to buy vessels from Russian-owned Irish entity

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Deal will proceed before deadlines imposed by international sanctions

The proceedings were taken in a bid to beat the US Department of the Treasury’s September deadline on deals with sanctioned companies and a later EU deadline. Photograph: iStockHigh Court orders have been made permitting a Cypriot shipping firm and its related entities to purchase vessels it currently leases from an Irish-registered company that is ultimately owned by the Russian state — before the looming deadline of international economic sanctions against Russia for its invasion of Ukraine.

The proceedings were taken in a bid to beat the US Department of the Treasury’s September deadline on deals with sanctioned companies and a later EU deadline. The Cypriot firms had sought court orders directing specific performance of their leasing contracts that will now, as a result of Judge Sanfey’s orders, allow them to complete a multimillion-euro deal to buy the ships, barges and tugs leased from GTLK.

The court was told that GTLK Europe, which leases out aircraft and marine vessels, is ultimately owned by the Russian state transport authority which became the subject of international sanctions introduced following Russia’s invasion of Ukraine in February last.

 

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