British Bank Avoids Loan Interest Over US Russia Sanctions

Law360, London (September 12, 2019, 6:13 PM BST) -- British lender Cynergy Bank Ltd. does not have to pay interest on a £30 million ($37 million) loan it took out with Cyprus-based Lamesa Investments Ltd. while U.S. sanctions targeting the company's ultimate Russian owner remain in place, a London judge ruled Thursday.

Judge Mark Pelling said that Cynergy Bank could rely on a clause in its contract with Lamesa Investments allowing it to miss payments without defaulting on the loan if a law, regulation or court order prevented it from transferring the sums.

At the heart of the dispute is a £30 million loan that Cynergy Bank, which was then...

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