The 2022 Sanction Challenges for International Commercial Arbitration and Methods of Resolving them

Abstract

The subject of this study is the impact of the sanctions policy imposed against the Russian Federation in 2022 on international commercial arbitration. For that purpose, we analyse the restrictive measures that have had a major impact on dispute resolution in international commercial arbitration involving Russian and sub-sanctioned persons. An important part of the study is an analysis of current practice in this area and the difficulties arising in order to develop recommendations and possible means of overcoming them for the continuation of international arbitration in Russia and access to justice for sanctioned persons. Over recent years, international commercial arbitration has become one of the most common means of dispute resolution, not only abroad, but also in the Russian Federation. However, the international nature of arbitration makes it highly sensitive to sanctions. Since the implementation of anti-Russian sanctions, especially in 2022, it became evident that the field of international commercial arbitration faces inevitable difficulties in terms of cooperation with foreign jurisdictions and its operation in general. The impact of restrictive measures on international commercial relations cannot be overestimated, with the number of cross-border disputes only increasing, which makes international commercial arbitration more than relevant and requires new solutions to overcome existing challenges. The research leads to a number of conclusions: the 2022 sanctions have certainly affected the world of arbitration but have not put an end to arbitration institutions in general; they have led to a global reorientation towards Asian arbitral institutions and a strengthening of Russia's position as a place for arbitration; parties to arbitration proceedings are finding new and successful solutions to the restrictive measures; many foreign jurisdictions are slowly softening their policy towards arbitration.