Sanctions and counteractions: the new arbitration battlefield

Presentation

Sanctions and arbitration have long shared a turbulent relationship. On the one hand, sanctions act as barriers, hindering claims arising out of contracts affected by sanctions and complicating enforcement against frozen assets. On the other hand, recent examples show that sanctions are no longer merely obstacles to arbitrating certain claims: they have become a source of disputes in their own right, with investment arbitration increasingly being used as a forum to challenge their imposition.

Beyond sanctions, the retaliatory actions taken by sanctioned States in response are further reshaping the arbitral landscape. These counteractions are designed to undermine the effectiveness of arbitration agreements (and subsequent awards) that refer disputes to arbitration in jurisdictions that have imposed sanctions. As a result, commercial actors must navigate mounting uncertainty, with their decisions and outcomes being heavily influenced by geopolitical dynamics. What was once a peripheral issue addressed within the arbitration process has now become a central concern, challenging the very effectiveness of arbitration itself.

This breakfast session, co-organised by Clyde & Co and Ankura at the Hôtel de Crillon, will explore how sanctions and the counteractions adopted in response to them are giving rise to increasingly complex disputes. Our speakers will offer practical, experience-driven insights into how practitioners and clients can adapt their strategies at every stage of the dispute lifecycle and act effectively when arbitration becomes entangled in the broader theatre of geopolitical confrontation.