Cyprus Court Makes Mareva Injunction Absolute in Complex Shipping Dispute

In a decision dated 23 September 2025, the District Court of Nicosia made absolute an interim Mareva injunction previously granted in the context of a high-value commercial dispute arising out of a series of shipping and investment agreements.

The proceedings concern claims exceeding €3.2 million and relate to the financing, acquisition and subsequent operation of an ocean-going vessel. The applicants allege that, following the conclusion of multiple agreements governing the acquisition of the vessel and the allocation of ownership interests, the respondents failed to comply with their payment and management obligations, while retaining control over the vessel and associated corporate structures.

According to the evidence placed before the Court, the dispute developed against a background of complex contractual arrangements involving multiple corporate entities incorporated in different jurisdictions, the use of special purpose vehicles, and the operation of bank accounts both within and outside Cyprus. The applicants contended that, absent urgent interim protection, there was a real risk that assets and funds connected to the transaction could be dissipated or placed beyond the reach of the Court before the determination of the substantive claims.

On a without-notice basis, the Court initially granted a Mareva-type interim injunction restraining the disposal, transfer or movement of assets and funds up to the amount claimed, including funds held in bank accounts in Cyprus and abroad. Ancillary disclosure relief was also granted, requiring sworn information to be provided regarding bank accounts, assets and beneficial ownership, in order to ensure the effectiveness of the freezing order.

Upon further consideration of the matter, the Court proceeded to make the interim injunction absolute. In doing so, the Court was satisfied that the requirements for the continuation of such exceptional interim relief continued to be met, including the existence of a serious claim, a real risk of dissipation of assets, and the necessity of preserving the status quo so as to safeguard the enforcement of any future judgment.

The Mareva injunction, together with the associated disclosure obligations, will accordingly remain in force until further order of the Court or the final determination of the proceedings.

This decision provides a clear illustration of the Cypriot courts’ approach to confirming robust interim protective measures in complex, high-value commercial disputes, particularly where cross-border elements and sophisticated corporate structures give rise to an increased risk of asset dissipation.