The issue before the Court
UniCredit’s bonds selected English law and ICC arbitration in Paris. Following the bank’s refusal to pay on sanctions grounds, RusChemAlliance sued in Russia, relying on Commercial Procedure Code Article 248.1. The English Court of Appeal ordered discontinuance of those proceedings. The permitted Supreme Court appeal concerned English jurisdiction: agreement law and the proper place for the claim, paragraphs 14–15.
Why a French seat did not exclude English jurisdiction
Under the then-applicable Enka and Kabab-Ji approach, the bonds’ English governing-law choice covered their arbitration clauses. This supplied the contractual gateway for service out, paragraph 63. The Court separately distinguished the seat courts’ supervisory jurisdiction from enforcement of the contractual promise to arbitrate, paragraphs 95–100. The injunction power came from Senior Courts Act 1981 section 37; arbitration did not have to be underway. This is not a universal power for every court in every foreign-seated dispute.
Disposition and limits
The appeal was unanimously dismissed on 23 April 2024, with reasons published on 18 September. The Court of Appeal’s injunction remained in place, paragraphs 1 and 113. It was directed to RusChemAlliance, not to the Russian court. The UKSC did not determine liability under the bonds, annul a Russian judgment or decide recognition of an existing arbitral award.
Update: the 2025 legislation
From 1 August 2025, section 6A, introduced by the Arbitration Act 2025, applies an express agreement-law choice or, failing that, seat law; the main contract’s governing-law choice is not enough by itself. Section 2(2)(za) extends this provision to foreign seats. Section 17(4) transition, rather than the contract date alone, determines application. The 2024 choice-of-law conclusion cannot therefore be promised mechanically in a new case. Part III’s separate Convention-enforcement regime also requires examination. See contract and agreement law.
General information. The applicable legal framework depends on the particular dispute, seat and enforcement country.