Russia Sanctions Create Heightened Need For Sophisticated Due Diligence In Sales Contracts

Washington, D.C. (April 18, 2022) - The increasing number and intensity of U.S. sanctions against Russia (see Lewis Brisbois' alert of April 13, 2022) have brought the need to conduct adequate due diligence prior to the execution of an agreement for the sale of goods and services into sharp focus. In the current fraught environment, businesses need to exercise an elevated degree of care to avoid the risks of both potential sanctions violations and the limited recourse available in the event of a contract default caused by the imposition of sanctions. Courts in the District of Columbia and in other jurisdictions give significant deference to U.S. government foreign policy measures like sanctions, and enforcement of a judgment may in any event be problematic.