RTI Limited (Appellant) v OWH i.L. (Respondent) (Jersey)

Permission to Appeal application lodged

Case summary
Permission to Appeal
Previous proceedings

Case summary

Case ID

JCPC/2026/0027

Jurisdiction

Jersey

Parties

Appellant(s)

RTI Limited

Respondent(s)

OWH SE i.L.

Issue

Does article 46A of the Sanctions and Asset-Freezing (Jersey) Law 2019 have retrospective effect? Did RTI have a reasonable belief that it was necessary to act in breach of contract by not making the payments to OWH?

Facts

RTI Limited (“RTI”) is a company incorporated in Jersey. It is a member of Rusal Group, and its parent company is United Company Rusal International (“Rusal”), a company that was originally incorporated in Jersey but has now moved to Russia. OWH SE i.L. (“OWH”) is a bank incorporated in Germany. It is a wholly owned subsidiary of VTB Russia, a Russian bank. On 11 September 2019, RTI and OWH entered into a currency swap contract which agreed to swap US Dollars for Russian rouble. The contract was governed by English law and provided that any dispute should be resolved by arbitration under the London Court of International Arbitration (“LCIA”) rules. On 24 February 2022, Russia invaded Ukraine. Sanctions were imposed on Russian banks, companies and individuals by the international community. VTB Russia was sanctioned under UK, Jersey, Gibraltar, and US legislation. The German federal financial supervisory authority also issued an order banning OWH from making payments to VTB Russia. RTI did not make the required payments under the contract because it believed that to do so might put it in breach of sanctions. While OWH itself was not a designated person under Jersey sanctions legislation, there was a concern that payment to OWH would result in funds being made available to VTB Russia. Discussions between RTI and OWH over the following weeks failed to identify any mutually acceptable mechanism by which the payments could be lawfully paid. On 23 March 2022, in view of the failure to pay, OWH sent RTI a termination notice. The sum calculated as being due was €214,000,000. The dispute was referred to arbitration. The arbitral tribunal made an award on 25 September 2024 (“the Award”) in the sum of €213,770,150.26 in favour of OWH. RTI applied to set aside an order dated 18 November 2024 granting leave to OWH to enforce the Award as if it were a judgment given by the Royal Court of Jersey. The Royal Court refused this application. RTI appealed to the Jersey Court of Appeal which dismissed its appeal. RTI now seeks leave to appeal to the Judicial Committee of the Privy Council.