High Court extends orders freezing assets of Russian-owned logistics firm

The High Court has formally extended orders granted to global aviation leasing firm BOC Aviation Limited freezing the assets of a Russian-owned logistics company.

Last month BOC, which is based in Singapore, secured the interim freezing orders, known as Mareva orders, that prevent the Dutch-registered Volga-Dnepr Logistics BV from reducing, lowering or dissipating its assets below a value of $406 million (€369.4 million). When the matter returned before Ms Justice Eileen Roberts on Tuesday, the judge said she was satisfied to extend and clarify orders that had been previously granted.

The orders will remain in place until the full hearing of BOC’s claim has been determined by the court.

BOC sought freezing orders over claims that the defendant was attempting to move assets to frustrate a judgment the leasing company obtained last April in a New York court for $406 million.

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BOC, which is represented in the action by Bernard Dunleavy SC and Ross Aylward, also secured an order appointing a receiver over the defendant’s 68.7 per cent shareholding in its Irish subsidiary Volga-Dnepr (Ireland).

That order was sought to prevent the shares, which the court heard have an estimated $236 million in value, from being dissipated, transferred or moved beyond BOC’s reach.

BOCs applications were unopposed. The court had previously heard that the defendant company may seek to challenge the jurisdiction of the Irish courts to make the orders sought by BOC.

However, Ms Justice Roberts heard on Tuesday that Irish-based lawyers who had been approached to represent the defendant had not been given any instructions to bring a motion challenging the Irish court’s jurisdiction to hear the case.

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In her ruling, the judge said she was satisfied to continue the freezing orders.

From the evidence, a strong case had been established that the defendant was attempting to move assets and cash out of Europe to places including the United Arab Emirates in an attempt to frustrate the world-recognised judgment granted against it by the New York court.

The judge also said that the court was satisfied to make orders clarifying the powers of the receiver, insolvency practitioner Declan Taite, over the defendant’s shareholding in the Irish subsidiary.

The judge was not prepared to make orders requiring certain directors of the Irish subsidiary to make certain disclosures about the company’s income, assets and liabilities to the plaintiff. She will revisit this matter on receipt of a report from the receiver when the case returns before the High Court later this month.

The court heard that the Irish subsidiary’s assets include three Antonov cargo aircraft located in Leipzig-Halle Airport in Germany, aircraft engines and various bank accounts held in Dublin, London and Frankfurt.

Previously, the court heard that BOC has a fleet of 635 aircraft, leased to 86 airlines in 39 different countries, and total assets of $22 billion.

[ Aircraft leasing group wins temporary order freezing assets of Russian-owned company ]

The defendant is an air cargo firm that is alleged to be at the head of a complex group of logistics companies whose ultimate owner is wealthy Russian businessman Alexey Isaykin. He is the subject of international sanctions following Russia’s invasion of Ukraine in February 2022.

The Volga-Dnepr group is believed to have assets of approximately $3.5 billion, $1.5 billion of which are held by the defendant company itself.

BOC said it opted to bring an action before the Irish courts as the Irish subsidiary has assets of alleged significant value, the High Court heard.