US Attorney Informed of Pending Motion Regarding International Sanctions

Upon request of its customer, Lummus Technology Heat Transfer B.V., Credit Agricole Corporate & Investment Bank issued a letter of credit in favor of LLC Kirishinefteorgsintez, a Russian company. The LC was obtained to support design and manufacturing by Lummus of specialized technology for use by the beneficiary in its oil and gas business. AO UniCredit Bank, based in Russia, added its confirmation.

Underlying contract performance was paused following Russia’s invasion of Ukraine. After LLC Kirishinefteorgsintez demanded payment from AO UniCredit Bank, the confirming bank honored. When AO UniCredit Bank turned to the issuer for reimbursement, Credit Agricole dishonored, “in part on the ground that providing the reimbursement would violate the international sanctions regime against Russia”.