DISPUTES ARISING FROM INTERNATIONAL SANCTIONS

CD: How would you characterise recent developments in international sanctions, such as those imposed following the Russian invasion of Ukraine?

Fisch: Heightened geopolitical tensions, driven by Russia’s invasion of Ukraine, have resulted in a robust set of economic sanctions that pose complex legal and compliance challenges for global business. The US and more than 30 other governments have imposed sanctions on Russia over the last 15 months, and the US Treasury Department has listed over 2500 Russia-related targets in more than 40 countries. The US government remains committed to enforcing its sanctions on Russia, and in March 2023, the US Departments of Justice, Commerce and Treasury issued a first of its kind joint notice to the private sector about Russia-related sanctions evasion. Recent rounds of US sanctions on Russia come as the US government has renewed its sanctions enforcement initiatives. In the first four months of 2023, US enforcement actions resulted in nearly $550m in penalties for sanctions violations. Beyond Russia, these actions represent violations of several sanctions programmes, including against Iran, Venezuela, Syria and North Korea, and affect businesses across a diverse set of industries, including banking, technology, digital assets and manufacturing.

Cristini: Recent worldwide regulatory interventions have been labelled a ‘sanctions revolution’. As a consequence of the invasion of Ukraine in February 2022 by Russia, European Union (EU) countries swiftly adopted unprecedentedly tough sanctions, in close cooperation with partners including the US, the UK, Switzerland, Canada, Australia and Japan. To date, 10 sanctions packages – the first one in March 2014 – have been approved, and have resulted in an unparalleled set of measures targeting key sectors of the Russian economy and political elites. The new set of EU sanctions can be defined as unprecedented in scale and nature, and coordinated with global partners.

Jul-Sep 2023 issue

CMS Adonnino Ascoli & Cavasola Scamoni

Skadden, Arps, Slate, Meagher & Flom LLP