Abstract
The world is witnessing the imposition of new economic sanctions on an every-day basis. After the Russian annexation of the Crimean Peninsula in 2014, and in particular with the invasion of Ukraine in February 2022, the issue of economic sanctions received an upsurge of public scrutiny. Russian investors and companies, a number of which are facing economic sanctions, do substantial businesses in States that imposed sanctions targeting them. At the same time, Russian entities have established business relationships with corporations originating in such States. On the other hand, after the Crimea annexation, Russia adopted certain measures to counter the effect of economic sanctions in arbitration process. However, arbitral and court practice related to resolution of disputes involving sanctions is scarce, leaving many issues still unsettled.
Sanctions not only lead to disputes, but they also affect the initiation of arbitral proceedings, the substance of claims, the decisions of tribunals, and the enforcement of arbitral awards. Part II of this paper will address arbitrability as a procedural issue created by sanctions that typically complicate the initiation of arbitral proceedings. Part III takes up the substantive issues associated with sanctions regimes within the international arbitration proceedings. These include the situations in which the arbitral tribunal must consider sanctions as part of its substantive reasoning, where the sanctions provide the foundation for the claimants’ substantive case, as well as the foundation for the respondents’ defense. Part IV turns to the role that sanctions play during the recognition and enforcement proceedings, perhaps creating grounds to refuse the enforcement of arbitral awards.
Recommended Citation
Admir Muratović,
Economic Sanctions in International Arbitration Proceedings,
48 Loy. L.A. Int'l & Comp. L. Rev. 43
(2025).
Available at: https://digitalcommons.lmu.edu/ilr/vol48/iss1/2
