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Articles Posted in Sberbank

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Sanctions Do Not Excuse Non-Payment to a Non-Sanctioned Party If Obligation Accrues Prior to Sanctions Coming into Force

Takeaways Sanctions operate prospectively and do not affect payment obligations to a non-sanctioned party accruing before sanctions became effective. Payment obligations under standby letters of credit at issue were autonomous and unconnected with the underlying transaction. The fulfilment of an independent obligation owed by a German bank to Irish-incorporated aircraft…