Sanctions contract disputes have become a defining feature of international arbitration in 2025-2026. Parties dispute whether sanctions make performance impossible, illegal, or commercially unreasonable, triggering force majeure or frustration.
Experts analyse the applicable sanctions regime at the relevant dates, the impact on specific contractual obligations, foreseeability at contract formation, and the interaction between UK, EU, and US sanctions with blocking regulations.
Award enforcement may also be affected by sanctions, requiring expert analysis of the regulatory landscape post-award.
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Frequently Asked Questions
What does a sanctions expert analyse in a contract dispute?
A sanctions expert analyses the applicable regime, specific designations and restrictions at relevant dates, whether performance was legally possible, the interaction between conflicting sanctions regimes, and whether sanctions were foreseeable when the contract was formed.
How do blocking regulations affect sanctions contract disputes?
EU and UK blocking regulations may prohibit compliance with foreign sanctions, creating conflicting obligations. Experts explain how blocking regulations interact with primary sanctions and what options were available to the performing party.