Revue - Les Cahiers de l'Arbitrage N°1-2023 - 33

DOCTRINES - DÉBATS
cases. 4
Whilst the introduction of EU sanctions against Russia in 2014 impacted
both the compliance landscape and caseload of European arbitral institutions, 5
the
sanctions introduced in 2022 by the EU and a post-Brexit United Kingdom (UK)
are far more extensive in their scope, impact, and complexity. 6
4. It is pertinent, therefore, to consider how leading arbitral institutions have
responded to this recent wave of sanctions against Russia. This article considers
the compliance landscape and response of arbitral institutions in the EU and the
UK - two of the jurisdictions where arbitral institutions most acutely face the twin
challenge of extensive compliance requirements and popularity for Russian parties
and/or cases. Section 1 provides a brief overview of the recent sanctions measures
adopted by the EU and the UK. Section 2 then explores the key ways in which these
sanctions measures have affected the commencement and conduct of proceedings,
and how arbitral institutions have responded. Section 3 then explores the wider
context beyond case administration in which these responses should be understood.
5. The authors would like to express their sincere appreciation to the
representatives from several leading arbitral institutions that kindly provided
candid and valuable insights via interview over the course of the past year. Their
comments have been generalised and unattributed, though have helpfully infused
the findings presented.
1. Overview of recent sanctions measures targeting Russia
1.1 European Union
6. During 2022, the EU progressively adopted nine sanctions packages, which
dramatically expanded and supplemented the existing restrictive measures enacted
against Russia in 2014 following its illegal annexation of Crimea and Sevastopol. 7
These measures include the following: (i) individual restrictive measures,
including asset freezes and travel restrictions, which are now imposed on over
1300 individuals and over 100 companies and other entities (collectively referred
to hereafter as listed persons); 8
(ii) economic sanctions, including the prohibition
4. Emmanuel Jolivet, General Counsel of the ICC stated in October 2022 that in the past two
years a third of the ICC's arbitrations " have involved international sanctions " . See Chloé Terrapon
Chassot, " Sleepless nights over sanctions " , Global Arbitration Review, 12 October 2022, available
here: https://globalarbitrationreview.com/article/sleepless-nights-over-sanctions.
5. Including the LCIA, prior to the UK's exit from the EU. See the LCIA 2021 Annual Casework
Report, p. 4.
6. " Timeline: measures adopted in 2022 " , European Commission, available here: https://finance.
ec.europa.eu/eu-and-world/sanctions-restrictive-measures/sanctions-adopted-following-russiasmilitary-aggression-against-ukraine_en.
7.
This figure excludes the additional, unnumbered " compliance package " released on 9 March
2022. See " Timeline: measures adopted in 2022 " , European Commission, available here: https://
finance.ec.europa.eu/eu-and-world/sanctions-restrictive-measures/sanctions-adopted-followingrussias-military-aggression-against-ukraine_en.
8.
Council Decision 2014/119/CFSP of 5 March 2014 concerning restrictive measures directed
against certain persons, entities and bodies in view of the situation in Ukraine, OJ L 66, 6.3.2014,
p. 26-30, as amended; Council Regulation (EU) No 208/2014 of 5 March 2014 concerning
Les Cahiers de l'Arbitrage 2023‑1
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https://globalarbitrationreview.com/article/sleepless-nights-over-sanctions https://finance.ec.europa.eu/eu-and-world/sanctions-restrictive-measures/sanctions-adopted-following-russias-military-aggression-against-ukraine_en https://finance.ec.europa.eu/eu-and-world/sanctions-restrictive-measures/sanctions-adopted-following-russias-military-aggression-against-ukraine_en https://finance.ec.europa.eu/eu-and-world/sanctions-restrictive-measures/sanctions-adopted-following-russias-military-aggression-against-ukraine_en https://finance.ec.europa.eu/eu-and-world/sanctions-restrictive-measures/sanctions-adopted-following-russias-military-aggression-against-ukrain https://finance.ec.europa.eu/eu-and-world/sanctions-restrictive-measures/sanctions-adopted-following-russias-military-aggression-against-ukrain https://finance.ec.europa.eu/eu-and-world/sanctions-restrictive-measures/sanctions-adopted-following-russias-military-aggression-against-ukrain

Revue - Les Cahiers de l'Arbitrage N°1-2023

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