Sanctions – A Reminder Of The Impact On Arbitration

President Trump's decision to withdraw the USA from the Joint Comprehensive Plan of Action (JCPOA) with Iran and intention to re-introduce sanctions (see Clyde & Co's previous article on this issue here) serves as an important reminder for those involved in the arbitral process to have the impact of sanctions in mind at all stages of the process. The UK, France, Germany, China and Russia continue to maintain the deal with Iran but given the nature of international arbitration it is important to consider sanctions between jurisdictions other than those of the parties involved and the seat of the arbitration. For example, the legal status of the parties, those with a controlling interest in a party and the jurisdiction of enforcement may cause sanctions to still 'bite'.