International Arbitration in the Context of Anti-Russian Sanctions: Issues Raised through Practice

Abstract

In the context of the changing geopolitical situation and the introduction by various countries of anti-Russian sanctions and unilateral restrictive measures, Russian citizens faced numerous problems arising when trying to apply to a foreign arbitration institution they had previously chosen, when choosing arbitrators, experts and representatives. These problems arise at all stages of the proceedings: from its initiation and ending with the recognition and enforcement of the decision. The paper discusses the main problems and provides recommendations for their solution, supported by examples of judicial and arbitration practice, as well as references to the rules of regulations of various arbitration institutions (LCIA, ICC, SCC, HKIAC, SIAC, DIAC, ISTAC). Based on the analysis, it is concluded that the most effective ways to minimize the impact of sanctions on the proceedings are: 1) the choice of arbitration located in a neutral jurisdiction; 2) choice of ad hoc arbitration; 3) conclusion of alternative arbitration clauses; 4) an application to the Russian arbitration court with a statement recognizing its exclusive jurisdiction to resolve the dispute under Art. 248.1 APC RF.