Russian Oligarchs Lose High Court Challenge Over Broadband Sale

Investment firm LetterOne, backed by Russian oligarchs, lost a legal battle in Britain's High Court against the enforced sale of broadband provider Upp. The case, under the UK's National Security and Investment Act, was rejected, citing potential Russian state leverage over the firm's owners.

In a landmark decision, the High Court in London ruled against Russian oligarch-backed investment firm LetterOne, dismissing its challenge to the mandated sale of broadband provider Upp. The ruling marks the first significant test of Britain's National Security and Investment Act.

The investment firm, with owners including sanctioned oligarchs Mikhail Fridman and Petr Aven, was ordered to sell Upp in December 2022 amid concerns of potential Russian state influence. This enforcement underscores the UK's commitment to protecting sensitive sectors from foreign control.

Judge Judith Farbey rejected LetterOne's appeal, upholding government fears that the firm's ultimate owners could be subjected to leverage by the Russian state. The decision reaffirms the UK's stance on national security and investment scrutiny.

(With inputs from agencies.)