Published 13 February 2024
Unilateral Restrictive Economic Measures (“UREM”) are a country or block of countries-based measures aimed to restrain a target country’s economic relations and humanitarian well-being.
An avalanche of national UREM programs introduced by some states against the nationals of other states as well as counter-UREM regulations, negatively affect global trade, and consequently, international commercial arbitration. Accordingly, to pursue its case in international arbitration, a party affected by UREM must negotiate an ultimate obstacle course of legal restrictions and commercial limitations, which quite often become an insurmountable impediment to “having one’s day in court”.
Difficulties may arise at each stage when a party instructs service providers (legal counsel, expert witness, support services), initiates arbitration proceedings and pays arbitration fees, constitutes an arbitral tribunal or brings challenges, deals with the effect of UREM on an underlying commercial contract, deals with the setting aside of an arbitral award, pursues recognition and enforcement of the arbitral award.
Having in mind the impediments inherent to institutional arbitration, ad hoc arbitration can be a viable option for UREM-affected disputes.
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