Crimea and contract sanctions: a major step backwards?

25 March, 2014

The crisis in Crimea has led to EU economic sanctions listing Russian individuals involved in Russia’s bid to absorb the peninsula.

The aim is to force Russia to change course. Germany’s Chancellor Merkel is reported as saying that the EU has listed different individuals to the US because the EU is bound by the requirement that the listed individuals “have something to do with Crimea”.

A recent Foreign and Commonwealth Office (FCO) consultation would like to add a new weapon to the sanctions armoury. Contract sanctions would prohibit UK courts from enforcing contracts entered into with “a targeted regime”. Does this mean that all contracts with country X would be denied enforcement? If so, this would be a major step backwards from the concept of targeted sanctions.

To read more, visit The Lawyer

Also see the related PDF Briefing