The guidance notes that although the sanctions may engender additional procedural steps, they do not prevent parties from referring their arbitral disputes to EU-based institutions. The paper observes that “these sanctions do not result in a substantial change in the administration of arbitral proceedings”. However, it cautions that there are situations where an arbitration involves Russian parties, where the sanctions may influence procedure of the arbitration. For example, if a party designated under the EU sanctions regulations is also the ultimate beneficial owner of a party in the arbitration proceedings, a transfer of funds could be subject to the freezing of assets and other financial sanctions which impact particular sectors of the Russian economy.
