International Arbitration Faced with the Challenge of Economic Sanctions

Abstract

The multiplication of economic sanctions has caused serious challenges for the users of international arbitration. Access to international arbitration and, more particularly, to institutional arbitration has been seriously affected by their ever-growing spread. Fundamental principles that should govern any sound arbitral process are adversely affected. In certain instances, sanctions have led to a denial of justice. After being tetanized for many years, arbitration institutions are taking steps to remedy this situation. Such steps are, however, still insufficient. Users and practitioners from sanctioned states continue to remain in an unfair position. They should take this situation into account when drafting arbitration agreements.

Keywords

• sanctions
• arbitral institutions
• arbitration costs
• confidentiality
• transparency
• denial of justice
• accountability