UK issues licence to receive payment for legal services from Russian sanctioned parties
The UK government has issued a general licence to enable providers of legal services to receive payment from clients who are designated under the Russia sanctions.
In a blog post, the UK Office of Financial Sanctions Implementation (‘OFSI’) notes that since 22 February, ‘the Government has introduced over 1200 new designations under the Russia Sanctions regime,’ representing ‘a substantial increase in those who are subject to a UK asset freeze and who would now require an OFSI licence to use or benefit from any of the funds or economic resources they own or control. This includes funds needed to meet the basic needs of any of these individuals or entities, and the payment of fees for any legal representation they might seek.’
It said: ‘Acknowledging the importance of a person’s ability to receive legal advice and representation, OFSI has long had a position of not prohibiting the provision of legal advice to a designated person under an asset freeze. Payment for legal services, including payment for legal services provided on credit, by contrast has required an OFSI licence.
‘However, considering the extraordinary number of new designations under the Russia and Belarus regimes, and the correlating increase in the number of those seeking a licence from OFSI for the payment of legal fees, OFSI has issued a general licence to permit the payment of legal fees owed by individuals and entities designated under either of these regimes.
‘In practice, General Licence INT/2022/2252300 means that a UK legal firm or UK Counsel who has provided legal advice to a person designated under either the Russia or Belarus regime, will not have to wait for an OFSI specific licence before they can receive payment from that designated person, provided that the terms of the general licence are met.’
The licence is at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1114563/General_Licence_INT20222252300.pdf
