Asset Recovery Strategies in England, Switzerland, Cyprus and BVI Seminar

On 10 December Ilyashev & Partners and their peers at Hogan Lovells hosted a joint seminar entitled “International Litigation: Asset-Recovery Strategies in England, Switzerland, Cyprus and BVI”. The seminar dealt ways of bringing Ukrainian and Ukraine-related disputes to the English courts.

Ukrainian courts are no good choice in cases where a dispute involves substantial assets in multiple jurisdictions. Although proceedings in Ukraine are relatively fast, the weaponry of interim measures and levers available to Ukrainian courts is desperately insufficient.That is why Ukrainian companies are increasingly seeking effective justice with the English courts. The 6-billion BTA Bank v. Mukhtar Ablyazov case in which both companies hosting the seminar were retained by the plaintiff has demonstrated that the English courts have enough power both to use a wide range of interim measures – from freezing injunctions and disclosure orders to search warrants and receivership orders – and to enforce them under the threat of imprisonment for all those who try acts in contempt of court. Mukhtar Ablyazov is currently arrested and put in jail in France, as defendant was ordered 22 month in prison for contempt of court.As the advantages of litigating in England are obvious, it is expected that major Ukrainian players will continue to litigate in London.Roman Marchenko, senior partner, has highlighted some key points of concern for Ukrainian parties in English courts:

- disclosure of information and documents to the extent far exceeding the ordinary scope of disclosure in Ukrainian courts;

- legal costs, including significant attorneys’ fees, may be imposed on the losing party;

- the court may require the claimant to provide security for costs, covering the amount which may be awarded to respondent in case the claim fails. If the security is not provided, the claim may be dismissed.