Power of sanctions: Russians are abandoning their beloved London courts
There has been a dramatic drop over the past year of Russian businesses and individuals using London’s Commercial Court, after the push from the legal sector to drop Russian clients.
The Russians were consistently one of the most common foreign nationality using London’s courts in previous years, however, a new report by Portland revealed that number has now more than halved.
A record number of 58 Russian litigants appeared in the Commercial Courts from April 2022 to March 2023, making them the most common foreign nationality in that period. That has now dropped as just 27 appearances in judgments were recorded between April 2023 and March 2024.
The report reveals that just 30 per cent of Russian litigants had legal representation this past year, compared to 70 per cent the previous year.
The UK sanctions regime has not precluded designated entities from using London’s courts, but majority of law firms stopped representing Russian clients, with most closing down operations in Moscow following the invasion.
Portland’s own data shows that a majority of the UK public (62 per cent) remain supportive of law firms who have closed their offices in Russia since the beginning of the War in Ukraine.
Now, the top five most common foreign nationalities appearing in the courts were Ireland, the US, Switzerland, the UAE and India. In terms of nationalities, Ireland follows in second place after the UK as over the past year the London courts heard 139 litigant cases.
In the report’s foreword, the Lady Chief Justice, Baroness Carr of Walton-on-the-Hill stated that “…these figures present a story of continuity and change. International litigants continue to represent a clear majority of the court’s cases, but there has been a notable change in their make-up”.
Commenting on the report, Simon Pugh, partner and head of Portland’s litigation and disputes practice, said: “The data Portland collected this year demonstrates London’s continued position as a global leader in commercial litigation, with more international litigants appearing in the courts than ever before.”