UK high court sets aside statutory demand as breaching the EU’S sanctions on the Libyan investment authority

Mrs Justice Rose this week gave judgment in Maud v The Libyan Investment Authority [2015] EWHC 1625 (Ch), setting aside the Libyan Investment Authority’s statutory demand for payment under a 2008 guarantee on the grounds that making payment to the LIA would breach the EU’s sanctions regime relating to Libya (which had the effect of freezing the guarantee and preventing claims in connection with affected contracts). She granted the application even though it was made out of time under the UK’s Insolvency Rules, because of the prejudice otherwise to Mr Maud (who was facing a bankruptcy petition) and because of the need to clarify the sanctions regime. The judgment contains interesting analysis of the EU Libya sanctions regime, including its UK licensing provisions, and sanctions/export control case law from the 1940s and 1960s.