CL-2022-000456 - [2025] EWHC 1938 (Comm)

For the purposes of the proceedings before me, the change most directly relevant to the ownership structure of EuroChem NW2 and EuroChem AG, in the context of sanctions, was the retirement of Mr Melnichenko from the position of discretionary beneficiary of the Firstline Trust.

There was an issue before me as to the precise date, which I consider in Section XX below, but it was clear that it happened no earlier than 8 March 2022, and no later than 10 March 2022 – on any view, at around the time when Mr Melnichenko was designated by being added to the list at Annex I to Regulation 269.

The immediate effect of Mr Melnichenko’s retirement was that Mrs Melnichenko automatically became the discretionary beneficiary. She also automatically became the protector.

On 10 March 2022, Mr Melnichenko signed a letter resigning his non-executive directorship of EuroChem AG. The letter was dated 9 March 2022 (i.e., the same day that he was designated), but it was common ground that Mr Melnichenko did not sign it until the following day.

On 17 March 2022, Mrs Melnichenko appointed Mr Fokin as protector of the Firstline Trust, and, herself, resigned from the position of protector.

On 7 May 2022, by a board resolution of Linetrust PTC – in the person of its then directors, Ms Skittides and Mr Constantinides, and with the consent of Mr Fokin as protector – 8,750 shares in Linea and 2,000 shares in AIM Capital were transferred to Mrs Melnichenko. These were minority shareholdings, but their value was substantial – several billion US$ (or €).

As already noted, Mrs Melnichenko was designated under Regulation 269 on 3 June 2022.