The Pravo.ru portal has published its April sanctions digest, focusing on key changes in EU legislation.
The main topic of this issue is the new, 20th package of restrictions, which, among other things, introduces into European law an equivalent to Article 248.2 of the Russian Federation’s Arbitration Procedure Code.
Under the new Article 11ca of Regulation No. 833, European courts are now empowered to issue anti-suit injunctions.
This is possible if:
- proceedings have been initiated in Russia on the basis of exclusive jurisdiction (Article 248.1 or 248.2 of the APC);
- the performance of the contract is affected by the EU sanctions regime.
Violation of such an injunction entails fines commensurate with the potential damage to the aggrieved party. Thus, the European regulator is creating a mechanism to directly counter Russian legal proceedings in sanctions disputes.
As with Articles 248.1 and 248.2 of the APC, the effectiveness of the European anti-litigation prohibition will depend on whether the defendant has assets. If a Russian entity has assets within the territory of EU member states or EU-friendly states, there are real risks of non-compliance with the injunction issued under Article 11ca of Regulation No. 833. Conversely, if the Russian individual’s assets are located solely in Russia, enforcement of the European anti-suit injunction seems unlikely, and the actual risks for the Russian individual will be minimal,” comments Stanislav Dobshevich, partner at KKMP
For a detailed overview, please follow the link.
