Posted by London trainee Pedro Leake-Bandeira and associate Maria Capocci

The original Bankers Association of Finance and Trade Master Participation Agreement (“BAFT MPA”) was launched in 2008 to enable market participants (with its focus on banking groups) to more easily enter into risk transfer agreements, by providing a standard form document that all participants would grow to know and understand.

At the most recent Sullivan trade finance webinar, Geoff Wynne covered the development of documentation for transferring risk through different forms of participation agreements and considered whether the BAFT MPA is always the best way.

Jacqueline Cook, Of Counsel and Senior Knowledge Development Lawyer in our London Trade  & Export Finance Practice, has written an article, "Understanding Export Controls in UK Sanctions Legislation Relating to Russia: Issues for Lenders," first published by Butterworths Journal of International Banking and Financial Law (JIBFL) in November 2022.

On 12 October 2022, The Electronic Trade Documents Bill was introduced into Parliament.

It is a watershed moment in English law, but no-one has anticipated it more than those working in international trade. The (sometimes painful) process of trying to get trade documents from location A to B has been the source of frustration for many, exacerbated by the many lockdowns during the COVID-19 pandemic. Those who have advocated heavily for digitalisation of trade have been faced with one overriding problem: the inability to possess an electronic trade document under English law.

Following the highly anticipated publication by the Law Commission of its Electronic Trade Documents Report and draft Electronic Trade Documents Bill on 16 March 2022[1], the Electronic Trade Documents Bill (the Bill) is now on the legislative agenda for the year ahead. This was one of thirty-eight bills referred to in the Queen’s Speech (delivered on 10 May 2022) and is part of the UK Government’s plan to prioritise the growth and strength of the economy. The Bill will put electronic trade documents on the same legal footing as paper documents, thereby resolving the prevailing legal blocker under English law preventing possession of an intangible asset. This will greatly enhance the digitalisation of trade under English law.

Given the recent expansion of the regulatory landscape in light of the ongoing events in Russia and Ukraine, namely the imposition of extensive sanctions on Russia (and certain Russian banks and nationals), there has been a lot written and published on the black letter terms of the sanctions themselves. This update focuses on the common “secondary issues”, these being the commercial questions that arise from the implementation of sanctions that are most likely to impact on parties’ contractual obligations.

This post is a follow-up to our recent post "Ukraine in Crisis: What do the UK sanctions against Russia and Russian entities mean for your business? - A practical guide" on UK sanctions against Russia.

In light of Russia’s recent invasion of Ukraine, the international community has responded in new ways through packages of sanctions against the Russian state, Russian banks and named individuals. Amongst other things, UK measures cover a number of trade-related sanctions, namely in respect of energy-related goods or services, infrastructure-related goods, military goods and technical assistance, dual-use goods and technology transfers. Provision of financial sanctions or funds (as defined in the Sanctions and Anti-Money Laundering Act 2018) for such goods, services and technology is also prohibited.

Where are we today?

With sanctions being imposed by the international community on an almost daily basis on Russia (and certain Russian banks and nationals) since its threatened destabilisation and subsequent invasion of Ukraine on 24 February 2022, keeping up with the ever-changing position is a challenge. Both here in the UK and across the globe, numerous financial and economic sanctions, as well as extensive and novel trade sanctions, have been imposed, with more waiting in the wings, all with the goal of limiting Russian access to the international markets, restrict the functioning of international contracts and stopping the flow of money to the Russian state, certain financial institutions and some businesses.

Sam Fowler-Holmes, Partner, assisted by Jacqueline Cook, Of Counsel and Senior Knowledge Development Lawyer, presented our January webinar which looked at the second edition to A Practitioner’s Guide to Trade and Commodity Finance (“Guide”) which our Trade and Export Finance has updated and greatly expanded under the editorship of Geoffrey Wynne. The book, published at the end of 2021, marks a significant milestone for the firm marking ten years since the first edition. Sam gave a synopsis of what the Guide covers and how much development there has been in the area of trade, commodity and export finance and Jacqueline gave a round-up of some key legal and regulatory issues, some of which are still in development The Guide is based on English law and where appropriate gives some examples from other jurisdictions.

By Amanda Montano, associate, and Talal Khan, trainee

In the latest edition of Sullivan's webinar series, Geoffrey Wynne, Head of the Trade & Export Finance Group at Sullivan's London office, discussed key aspects of structuring trade finance transactions, including best practice approaches and risk mitigation. Geoff was joined by Jacqueline Cook, Of Counsel and Senior Knowledge Development Lawyer, who gave an informative overview of the key aspects of security used in trade finance structures. Here are some of the key areas discussed.

Written by Matilda Johnson, Trainee Solicitor

At the latest Trade & Export Finance webinar, Sam Fowler-Holmes, a partner in the Trade & Export Finance Group at Sullivan's London office, gave some valuable insight into what to consider before using a special purpose vehicle (SPV) in trade finance transactions. As SPVs become increasingly commonplace in trade structures, particularly in the receivables finance sphere, this is a timely opportunity to consider some of the "risks and rewards" associated with SPV structures.