Enforcement of Arbitral Awards and International Sanctions
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3 rd DIS Baltic Arbitration Days Dr. Marc D. Veit Enforcement of Arbitral Awards and International Sanctions Riga, 26 June 2014
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Enforcement of Arbitral Awards and International Sanctions. 3 rd DIS Baltic Arbitration Days Dr. Marc D. Veit. Riga, 26 June 2014. International t rade s anctions. Increasing number of countries affected Sanctions are becoming more restrictive and extensive. - PowerPoint PPT Presentation
Transcript of Enforcement of Arbitral Awards and International Sanctions
3rd DIS Baltic Arbitration DaysDr. Marc D. Veit
Enforcement of Arbitral Awards and International Sanctions
Riga, 26 June 2014
International trade sanctions
Enforcement of Arbitral Awards and International Sanctions
Increasing number of countries affected Sanctions are becoming more restrictive and extensive
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Example: Trade sanctions against Iran
Oil/gas Shipping equipment/st
eel
Financial transactions
Blacklist
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Enforcement of Arbitral Awards and International Sanctions
Trade sanctions impact international arbitration at different stages
En-forcement
Illegality/Impossibility
Arbitrability
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Enforcement of Arbitral Awards and International Trade Sanctions
Inst
itutio
n?
Arbitrability
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Sanctions impact international arbitration at different stages
Illegality Impossibility
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Trade sanctions impact international arbitration at different stages
Enforcement stage
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Sanctions impact international arbitration at different stages
Switzerland: X Ltd. Vs. Z (21 January 2014)
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Enforcement of Arbitral Awards and International Sanctions
Sale and Purchase Contract (1977) for delivery of crude oil to Israel
X. Ltd (Switzerland) Z (Iran)
USA: Ministry of Defense and Support for the Armed Force of the Islamic Republic of Iran vs. Cubic Defense Systems (9th Cir. 2011)
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Enforcement of Arbitral Awards and International Sanctions
Cubic Defense Systems (USA)
Ministry of War (Iran)
Contract on sale and service of air combat maneuvering range (1977)
Sanctions as obstacles to enforcement Complete prohibition of coal-export: COSID v. Steel
Authority of India, AIR 1986 Del. 8 (22) (Delhi High Court, India)
Public policy exception?
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Enforcement of Arbitral Awards and International Sanctions
Institutions?
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Sanctions impact international arbitration at different stages
Lessons learnt Disputes involving international sanctions are
arbitrable International trade sanctions generally do not belong
to transnational public policy Awards will be enforced in many jurisdictions, despite
international trade sanctions Even if award is enforced, actual payment may require
approval Difficult situation for institutions
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Enforcement of Arbitral Awards and International Sanctions
