UK High Court requires sanctioned bank (VTB) to pay cross-undertaking fortification into court

14 May 2026

The High Court has held that VTB Bank must pay £500,000 into court as fortification for its cross-undertaking in damages in support of a worldwide freezing order, rather than simply ringfencing funds in its own bank accounts – VTB Bank v Kuanyshev and Askar [2026] EWHC 591 (Comm).

VTB has been subject to UK and US sanctions since February 2022 so cannot make any payment, including in satisfaction of a court order, without a licence from OFSI or OFAC. In February 2026, VTB obtained a worldwide freezing order against Timur Kuanyshev and his wife Alfiya Askar in connection with a US$90 million claim in Russia. It gave a cross-undertaking in damages and ringfenced £100,000 at Barclays as fortification.

The respondents applied to increase the fortification to £500,000 and to require payment into court. The court accepted both applications. It:

• ordered VTB to apply for the necessary OFSI and/or OFAC licence as soon as possible, to pay the funds into court once the licence was obtained, and to report to the court on progress.

• held that, since obtaining a licence could take between 6 weeks and 18 months, it was better to start that process immediately rather than wait until a court order for payment was actually made.

• did not decide whether a further licence would be required to release the funds from court if an order under the cross-undertaking were subsequently made.