Abstract 

This article examines the impact of secondary sanctions on international commercial disputes submitted to arbitration, focusing on their relevance during both the arbitration proceedings and the post-award stage.

It distinguishes between the application of secondary sanctions as substantive legal norms and their consideration as factual circumstances affecting contractual performance. The article argues that secondary sanctions should not be applied as legal norms, irrespective of the methodological approach adopted, whether based on a conflict-of-laws analysis or transnational public policy. Where secondary sanctions are invoked as supervening events affecting performance, their assessment should be conducted within the contractual framework and in accordance with the lex contractus.

At the post-award stage, an award giving effect to secondary sanctions may face serious challenges in annulment or enforcement proceedings on public policy grounds, especially within the European Union.

Ultimately, while secondary sanctions are designed to disrupt global supply chains and economic networks and can exert significant pressure on the contractual parties, the party relying on them to refuse performance or terminate the contract exposes itself to significant risks in arbitral disputes.

This paper will be part of the third 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