A judge has postponed a three-week Commercial Court trial involving claims and counter-claims for $30 million because one of the parties is awaiting approval from the Office of Sanctions Implementation to pay for legal representation. In the absence of a lawyer, VTB Commodities Trading had applied for permission to be represented at the hearing next year by its Swiss chief executive. 

Ruling on a series of applications in VTB Commodities Trading v JSC Antipinsky Refinery , Mr Justice Foxton found that as a result of sanctions VTB is not in a position to pay for representation. Fraud specialist PCB Byrne, which had been acting for VTB, came off the record in June, the court head. Neither solicitors nor counsel were willing to undertake the hearing without remuneration. 'Nor can they be criticised for adopting that position,' the judge found.

The trial had been due to start on 2 May next year. 'It involves allegations of dishonesty... and expert evidence of Russian law and market practice,' the judge said. 'Each side is claiming some $30m from the other. On any view, it is significant litigation.'

Even for a legally represented the litigant, the pre-trial timetable would be demanding, Foxton said. 'I am satisfied that the issues arising at the trial are not matters which the director of a Swiss commodities trader is realistically going to be able to advance on VTB’s behalf.' 

He 'reluctantly' found that the trial needs to be adjourned to November. 

'That does not mean, however, that VTB can sit and do nothing unless and until an OFSI licence is granted,' the judge warned. 'There are matters which can and should be progressed.'