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The Court of Appeal has this week heard argument in an important Russian sanctions case, R (Khan) v. SSFCDO. The appeal was from the first instance decision of Cockerill J ([2024] EWHC 361 (Admin)), who dismissed Ms Khan’s challenge to her designation under s.38 of the Sanctions and Anti-Money Laundering Act 2018. The case is significant because it is the first case to reach a substantive appeal in the Court of Appeal in relation to someone designated solely on the basis of the association provisions in the Russian sanctions regime relating to the war in Ukraine. That regime is contained in the Russia (Sanctions) (EU Exit) Regulations 2019 and includes a power to designate a person based on their relationship with another interested person. Ms Khan is the wife of Mr German Khan, a prominent Russian businessman who is on the supervising board of the company which owns Alfa Bank, Russia’s largest private bank. He is also the subject of designation under the Russian sanctions regime. Ms Khan was designated on the basis that she was associated with Mr Khan as a result of their marriage and financial benefits from Mr Khan. Ms Khan challenged her designation on the basis that it was Padfield improper (as contrary to the purposes and principles of the relevant legislation), in breach of her Article 8 rights (specifically, in that it was not rationally connected to the purpose of the Regulations and did not strike a fair balance) and was based on an ultra vires regulation (which was not sufficiently foreseeable to comply with the “provided by law” requirement, not rationally connected with the purpose of the Regulations and was not capable of striking a fair balance). The challenge is thus proceeding both at the generic level against the legality of the regulation used in her case, and at the specific level against her own designation. Cockerill J dismissed the claim on all grounds. The Court of Appeal has reserved judgment.
The judgment of Cockerill J can be found here.
David Blundell KC appeared as leading counsel for the Secretary of State for Foreign, Commonwealth and Development Affairs.
