Sanctions as the Main Event
Sanctions are no longer the backdrop to international arbitration; they are the main event. Nearly 25% of ICC cases in Q1 2024 involved sanctions, and the trend is expected to continue through 2026.
Parties dispute force majeure, frustration, impossibility, and the lawfulness of performance under overlapping UK, EU, and US sanctions regimes.
Russia-Ukraine and Iran Sanctions
Russia-Ukraine sanctions have generated the largest volume of sanctions-related arbitration. Iran re-sanctions in 2025 have renewed complexity for parties with Middle East operations and supply chains.
Experts must analyse the sanctions landscape at specific dates, not present-day designations, and address how regulatory changes affected contractual obligations.
Blocking Regulations
EU and UK blocking regulations prohibit compliance with certain foreign sanctions, creating conflicting legal obligations. Experts explain the regulatory framework and what performance options were available to parties.
Expert Evidence Approach
Sanctions experts should be instructed early with the contract, applicable law, and relevant dates. Reports should address foreseeability, impossibility, and the interaction between jurisdictions' sanctions regimes with reference to specific contractual clauses.