High Court Rules Against Oligarch-backed Firm in Landmark National Security Case

Russian oligarch-backed firm LetterOne lost its legal battle against the forced sale of broadband provider Upp in the UK. The High Court upheld the decision as part of Britain's National Security and Investment Act, which led to the divestment due to fears of Russian state leverage.

In a landmark case under Britain's National Security and Investment Act, the High Court in London dismissed the challenge from Russian oligarch-backed investment firm LetterOne regarding the enforced sale of broadband provider Upp.

The case stems from government fears about vulnerable ownership due to possible leverage by the Russian state, impacting sanctioned oligarchs Mikhail Fridman and Petr Aven. Despite LetterOne's claims of unwarranted influence rejection, Judge Judith Farbey upheld the decision, citing legitimate national security concerns.

After selling Upp at a loss to Virgin Media O2, LetterOne expressed disappointment and hinted at a potential appeal, highlighting the firm's proactive measures post-Russia's Ukraine invasion. The controversial decision underscores heightened scrutiny of sensitive sector investments involving sanctioned entities.

(With inputs from agencies.)