Secondary Sanctions, Growth of Counter Sanctions and Implications for Contracts
* This session is included with Enterprise membership
The terms secondary sanctions and counter sanctions can provoke strong reactions from governments and markets alike. While the actual imposition of US secondary sanctions has been relatively restrained, the mere threat of use exposes many non-US actors to a potential disconnection from the U.S. financial system if they engage in certain conduct with a sanctioned entity. Furthermore, the impact and implications for global business has been amplified by the continual expansion of countries subject to US primary or secondary sanctions, particularly in cases where the target country is closely integrated with the global economy – also heightening the potential for effective counter-measures.
Various jurisdictions across the world have begun the process of implementing counter-sanctions measures, seeking to shield domestic companies from the extraterritorial reach of secondary sanctions. These have included blocking statutes, such as those implemented by the European Union and Canada, moving away from using the US dollar, and even the potential establishment of a non-Western version of SWIFT. Blocking statutes can present a complicated legal obstacle for global business, where conflicting sanctions legislation between two countries cannot be simultaneously complied with. To learn more about how these challenges play out in practice and what the future may hold for secondary sanctions and cross-border conflicts of law, please do join our expert panel discussion.
The panel discussion will include
Contextualizing the rise of secondary sanctions and their extraterritoriality
The scope for countersanctions and their implications
Civil legal challenges, such as civil enforcement cases within the EU
Conflict of law court cases, such as Lamesa Investments Ltd v Cynergy Bank Ltd (2019)
Managing contract clauses
Mapping the growth of secondary sanctions and countersanctions measures