Summary

The first issue raised on these two appeals is whether the obligation of the London branch of a German bank, UniCredit Bank GmbH, formerly UniCredit Bank AG ("the Bank"), to make payments under various letters of credit was prohibited by a UK sanction imposed on Russia, until licences to do so were obtained. The letters of credit were issued in connection with various leases of civilian aircraft to two Russian airlines as security for the lessees' obligations under the relevant leases. The payments under the letters of credit were to be made by the Bank to Celestial Aviation Services Ltd ("Celestial"), Constitution Aircraft Leasing (Ireland) 3 Ltd ("Constitution 3") and Constitution Aircraft Leasing (Ireland) 5 Ltd ("Constitution 5") (together "the appellants"), all of whom are Irish incorporated entities. The appellants are the lessors of the relevant aircraft and the Russian airlines are the lessees.