EU Sanctions

SCC Arbitration Institute is a neutral, independent and impartial dispute resolution venue in commercial business around the world. The SCC provides dispute resolution services to the Swedish and international business communities.

On 21 July 2022, EU adopted a 7th sanctions package (Council Regulation (EU) 2022/1269) which clarifies the scope of EU’s 4th sanctions package of 15 March 2022 (Council Regulation (EU) 2022/428) in relation to transactions with publicly controlled or owned Russian entities. In particular, the Regulation 2022/1269 exempts from the scope of sanctions, 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 arbitration award rendered in a Member State, if such transactions are consistent with the objectives of Regulation (EU) No 833/2014 and Regulation (EU) 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.

Since the introduction of sanctions by the EU against some Russian individuals and entities following the Russian Federation’s annexation of Crimea in 2014, the SCC has closely followed the developments. While Council Regulation (EU) 2014/269 regulates the freezing of funds of sanctioned individuals and entities, Council Regulation 2014/833 concerns sectorial sanctions.

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 the EU Regulation 833/2014. 

Please note, however, 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 the EU Regulation 833/2014.  

The SCC is aware of this prohibition and 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.  

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