SCC Arbitration Institute

Sanctions

A sanctioned party may file a claim under the SCC Rules. However, there may be some restrictions as regards payment.

Once in receipt of the request for arbitration, the SCC will undertake the necessary compliance checks and revert to the claimant should any specific measures need to be taken in this regard.

SCC Arbitration Institute is a neutral, independent, and impartial dispute resolution venue for parties from all parts of the world.

There are currently a number of sanctions in relation to many entities from different countries. SCC Arbitration Institute is located in Sweden and the EU sanctions are therefore especially of interest to SCC arbitrations.

EU Regulation 2022/1269 (which clarifies the scope of EU Council Regulation 2022/428 in relation to transactions with publicly controlled or owned Russian entities) exempts transactions which are strictly necessary to ensure access to judicial, administrative or arbitral proceedings in a Member State, as well as for the recognition or enforcement of a judgment or an arbitral award rendered in a Member State, if such transactions are consistent with the objectives of EU Regulation No 833/2014 and EU Regulation No 269/2014.

Being a neutral, independent, and impartial dispute resolution venue, the SCC welcomed this clarification by the EU and we continue to serve the international business community with time- and cost-efficient dispute resolution based on universal legal principles such as the rule of law and access to justice.

Information for parties covered by EU sanctions

Prior to filing a request for arbitration

Prior to filing for arbitration, a sanctioned/listed party must contact the SCC for further information and instructions.

Please note that payments of the registration fee or advance on costs from sanctioned/listed parties and from Russian or Belarusian parties and/or bank accounts require an approval from the SCC before such payment is remitted.

An authorisation to transfer funds to the SCC is required under the exemption provided in Article 4(1)(b) of EU Regulation No 269/2014. This provision allows for the relevant authority to grant an exemption from the sanctions for funds intended exclusively for payment of reasonable professional fees or reimbursement of incurred expenses associated with the provision of legal services. The application should be made to the National Board of Trade Sweden (Sw. Kommerskollegium) in the case of an entity, and to the Swedish Social Insurance Agency (Sw. Försäkringskassan) in the case of a natural person. Upon a successful application, whereby the relevant authority grants the requested exemption, the payment of the registration fee and/or advance on costs should be made to the SCC, and the case will proceed in accordance with the applicable SCC Rules.

Information to parties subject to sanctions under EU Regulation 833/2014

The SCC is able to receive and distribute funds strictly necessary to ensure access to justice as stipulated in Article 5aa 3.(g) of EU Regulation 833/2014.

Please note that the SCC may be unable to refund any surplus amounts of the paid advances due to the transaction prohibition outlined in Article 5aa 1.(a) of EU Regulation 833/2014. The SCC will, to the extent possible, calculate the advances as accurately as possible, to avoid any surplus amounts following the rendering of the final award. Any surplus amounts not able to be repaid will be kept at a separate SCC account and be refunded as soon as the prohibition has been lifted.

Information to parties subject to sanctions under EU Regulations 269/2014 and 765/2006

In order for the SCC to process funds related to a party subject to sanctions under EU Regulations 269/2014 or 765/2006, an authorisation from the National Board of Trade Sweden is required.

Once an authorisation is granted and the advances paid to the SCC, the SCC may be unable to refund any surplus amounts of the paid advances. The SCC will, to the extent possible, calculate the advances as accurately as possible, to avoid any surplus amounts following the rendering of the final award. Any surplus amounts not able to be repaid will be kept at a separate SCC account and be refunded as soon as the sanctions have been lifted in relation to the relevant party.

Additional information

For additional information, please contact Evelina T. Wahlström at evelina.tw@sccarbitrationinstitute.com.