Published 30 January 2024
The article delves into the complex, sanctions-related issues surrounding the arbitrability defense of article V(2)(a) of the New York Convention.
The extensive sanctions imposed by Western countries on the Russian Federation following the 2022 war in Ukraine led to uncertainties regarding the arbitrability of disputes. The uncertainties are aggravated by the countersanctions adopted by Russia, which directly target the arbitrability of disputes involving parties sanctioned by Western countries as well as disputes arising out of these sanctions. This article highlights the need for parties and arbitrators to navigate the risks of unenforceability in light of the arbitrability defense. It provides guidance on the appropriate actions to minimize these risks. This includes the importance of considering the jurisdictions of enforcement before commencing and during pending arbitration proceedings as well as evaluating the economic risks associated with the enforcement of awards.
This paper will be part of the TDM Special Issue on "Sanctions and International Arbitration: Impact on Substantive and Procedural Issues". More information here www.transnational-dispute-management.com/news.asp?key=1960