Sanctions In International Arbitration

The selection of international arbitration as the preferred forum has long been common for contracting parties located in different jurisdictions. The popularity of arbitration has only further increased for such contracts as parties look to avoid possible disadvantages when litigating in foreign courts and seek out the benefits of global enforcement under the 1958 New York Convention on the Recognition and Enforcement of Arbitral Awards. However, recent global events have thrust sanctions into the spotlight, and it is increasingly common that arbitral proceedings, once seen to be rather immune to geopolitics, are impacted when a party to the proceedings becomes the subject of sanctions. This article covers some of the practical implications to arbitral proceedings when a party is the subject of sanctions.