GTLK Malta Four Limited v Pola Maritime Limited & Ors

Facts

The claimant is a Maltese company which, at the material time, was a subsidiary of JSC GTLK, a Russian state-owned transport leasing company. It owned seven vessels, two floating cranes, three tugboats and two barges, and let them to Pola Logistics Limited, a Cypriot company, under seven ten-year bareboat charterparties on amended BARECON 2001 forms. Twelve materially identical Joint Deeds of Guarantee and Indemnity secured Pola Logistics' obligations. All four defendants guaranteed the LUFT 1 charter, and the first three defendants guaranteed the other six. In April and August 2022 JSC GTLK was designated under Regulation 269/2014, the Russia (Sanctions) (EU Exit) Regulations 2019 and the US Executive Order 14024. Pola Logistics then stopped paying hire. On 1 September 2022 it served notices terminating the charters, alleging repudiatory breach by the claimant, particularly of the quiet enjoyment covenant in clause 42, or alternatively frustration. The claimant rejected the notices. Its Irish parent was later placed into liquidation, and licences were granted by OFSI and OFAC. On 28 February 2024 the claimant served its own termination notices for non-payment of hire and required payment of the Purchase Option Price under clause 46.2. Neither Pola Logistics nor the defendants paid, the defendants failing to do so after demands made on 10 October 2024. Pola Logistics began LMAA arbitration raising the same issues. The claimant sued on the guarantees and applied for summary judgment for US$12,902,156.02 against all four defendants and US$29,134,156.98 against the first three, plus interest.