International Arbitration ♦ Online 65 Va. J. Int’l L. Online 2 (2024)

The Bear in the Room: Addressing the Challenges that Sanctions Impose on Russian Parties in International Arbitration

KAYLA AUZA

International arbitration aims to embody flexibility, neutrality, and a consensual approach for expedited dispute resolution between parties. However, in the wake of extensive international sanctions imposed on Russia following the events in Ukraine beginning in February 2022, sanctioned Russian parties have faced a myriad of procedural difficulties during arbitration affecting their ability to retain their counsel of choice, make financial payments, travel to in-person arbitration proceedings, and even find an impartial arbitrator. This Essay argues that these difficulties manifest in legitimate concerns regarding the sanctioned Russian party’s ability to secure a fair hearing, as well as analyzes the complications a non-sanctioned party experiences in seeking an enforceable arbitral award. This Essay concludes by examining Russian courts’ responses to international sanctions and provides potential future considerations for parties engaging in arbitration with Russian parties subject to sanctions.