Managing Sanctions In International Arbitration

Sanctions are economic and political measures used to restrict the actions of states, groups, or individuals, imposed either unilaterally or collectively. The UN Security Council, under the UN Charter, has the authority to impose sanctions to maintain international peace. The first such sanctions regime was established in 1968 in response to the power seizure in Southern Rhodesia. Currently, entities like the EU impose various sanctions, including autonomous ones, with Russia being a primary target following its 2022 invasion of Ukraine. Sanctions complicate international arbitration by creating new disputes, limiting physical participation in hearings, and obstructing enforcement. They pose significant challenges in finding legal representation and making international payments, reflecting their intent to pressure sanctioned parties into compliance with international norms.