Revue - Les Cahiers de l'Arbitrage N°1-2023 - 58

ARTICLES - DEBATES
40. The latest consolidated version of the FAQ on the two regulations 57
due to the increased flexibility of these proceedings.
does
not clarify whether pre-arbitral claim assessment falls under the broad prohibition
of legal services or not. Doctrine suggests that a possible solution could be ad hoc
arbitration 58
41. Until clear answers on these issues are provided, the delimitation of the
scope of the legal services will remain a fundamental step for each lawyer and
most law firms will take a cautious approach.
3.2 The case of resigning counsel of a sanctioned party
42. Caution has been applied by many law firms who were representing
Russian clients before February 2022. A general wave of stepping-down of highprofile
global law firms from the representation of Russian clients or the Russian
Federation took place as early as March 2022 when more than 15 of them exited
Russia and most of them ceased representing the state of Russia or Russian entities. 59
43. However, the process of ceasing representation is a complex one. As
suggested by an enforcement proceeding in front of the High Court of Justice of
England and Wales 60
in the Hulley Enterprises v. Russia saga, 61
stepping down
as counsel might not be as immediate as one would want. White & Case LLP
represented the state of Russia and initiated a handover of the file early March
2022, but was only able to complete the handover on 7 June 2022, when they
were officially removed as solicitors on the record. 62
Nevertheless, as stated
by Russia, even if it sought to engage alternative counsel and entered into an
agreement in principle, the OFSI gave no substantive response or any authorization
allowing it to complete the process. Contrarily to the request of Russia, the Court
denied adjournment and hosted the hearing, which was followed by a judgment
lifting the stay of an initial enforcement proceeding. 63
44. Conversely, there are cases when counsel's request to cease legal ties is
not granted. Some courts even ordered lawyers to continue providing legal services
in certain instances. That was the case for example in an enforcement proceeding
of the same arbitral award (Hulley Enterprises v. Russia), where a U.S. court denied
counsel's request to resign due to the " complex and fact-intensive nature of the
current phase of proceedings " . 64
57. Commission Consolidated FAQs on the implementation of Council Regulation No 833/2014
and Council Regulation No 269/2014
58. Roman Zykov, 'Chapter 8: The Impact of Unilateral Sanctions on Institutional Arbitration',
in Axel Calissendorff and Patrik Schöldström (eds), Stockholm Arbitration Yearbook 2021 (Volume 3,
Kluwer
Law International 2021) 119, 133.
59. Meghan Tribe, White & Case to Close Moscow Office, Joining Other Exits (1) (Bloomberg
Law, 11 March 2022) accessed 15 February 2023.
60. Hulley Enterprises v. Russia, Judgment of the High Court of Justice of England and Wales
[2022] EWHC 2690.
61. Hulley Enterprises Ltd. v. Russian Federation, PCA Case No. 2005-03/AA226.
62. Hulley Enterprises v. Russia, [13].
63. Ibid [47].
64. Hulley Enterprises Ltd et al - v - The Russian Federation - United States District Court for the
District of Columbia Case 1-14-cv-01996-BAH - Respondent's Motion for an Evidentiary Hearing to
Cross-Examine Petitioners' Witnesses - 13 July 2022.
56
The Paris Journal of International Arbitration 2023‑1

https://news.bloomberglaw.com/business-and https://news.bloomberglaw.com/business-and

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

Table des matières de la publication Revue - Les Cahiers de l'Arbitrage N°1-2023