EU sanctions and arbitration: managing dispute risk before a dispute arises

By Amany Chamieh, Michaël Perche and Khalil Chlaifa

Winning an arbitration is one thing. Getting paid is another. EU sanctions against Russia now reach into every stage of the dispute lifecycle, from whether an arbitration clause can be implemented, to whether counsel and institutions can be paid, and to whether a favourable award can ever be enforced and monetised. Meanwhile, a jurisdictional tug-of-war has emerged: Russian courts claim exclusive jurisdiction over sanctions-related disputes, while the EU has armed its operators with countermeasures. For businesses with exposure to sanctioned counterparties, dispute preparedness is no longer a separate exercise from sanctions compliance. It is sanctions compliance.