Navigating arbitration in a world of sanctions and other political measures, lessons from the energy industry and consequences of the war in the Middle East

Presentation

Please join us for a panel event followed by a drinks reception where participants will hear from a diverse set of speakers on how to navigate arbitration in a world of increased sanctions and political measures.

The panel will discuss how international sanctions and political measures are reshaping international arbitration, using examples from energy disputes. The panel will look forward to the consequences of the on-going war in the Middle East and scope for disputes.

The panel will address the impact of sanctions and political measures on commercial contracts more broadly, including questions of contractual performance, repayment claims, and compliance risks. Using concrete examples, such as the Gasum dispute, the speakers will explain how political measures, such as the Russian “rouble payment” decree, have triggered disputes over force majeure and contractual obligations.

Complex issues arise when states adopt regulatory measures that may affect the incentives of the parties or the assessment of quantum, such as receiving State Aid funds. Sanctions have also had rippling consequences on energy markets, triggering waves of disputes as sanctions shifted incentives for market participants under other contracts.

In addition, the panel will discuss the practical operation of sanctions regimes, including the growing practice of Western authorities issuing guidance on whether specific activities would infringe sanctions, and the challenges businesses face in navigating complex and sometimes ambiguous rules.

Finally, the discussion will consider the consequences of recent measures such as the EU’s Russian gas import ban, and the expected disputes from the on-going closure of the Strait of Hormuz. Significant damage to hydrocarbon facilities, especially to QatarEnergy's facilities have set the scene for volatility and disruptions in energy markets and beyond.