LCIA Russian Sanctions arbitration settles

Russian Sanctions continues to impact the international shipping and commodity sectors.  Recently, IY LEGAL acted for the seller of Russian origin coal shipments under a long term supply contract to a well known European energy business buyer. 

In response to UK and EU sanctions, the buyer imposed a blanket ban on its import of Russian coal and either postponed or cancelled all contracted shipments relying upon force majeure provisions in applicable contracts and sanctions legislation.  The detail of the claims and defences were complex (and the sums at stake very considerable), involving arguments as to the effect of UK sanctions legislation and if they applied at all to the buyer, the legal advice taken at the time by the buyer and whether there was an available market for coal at the DAP delivery point in connection with our clients’ damages claim, for the purposes of the SCoTA terms and the UK Sale of Goods Act.

LCIA Arbitration proceedings were commenced and then pursued and defended with vigour by both parties.  Eventually, the parties elected a commercial settlement rather than pursue further what would have, inevitably, become drawn out and costly proceedings. 

Whilst the parties involved/precise settlement terms are confidential, we achieved a significant recovery for our clients of many millions of Dollars, whilst also assisting them to maintain their trading relationship with the buyer.    

Back to News


Commercial Lawyers
Arbitration Specialists

Let us know if you think we can help... +44 (0)207 1773371