The Office of Foreign Assets Control, a vital arm of the U.S. Department of the Treasury, has broad authority to enforce economic sanctions that restrict commercial activities with targeted individuals, entities and countries.
For instance, on February 23, 2024, following the death of Aleksei Navalny and marking the second anniversary of Russia’s further invasion of Ukraine, OFAC designated almost 300 individuals and entities pursuant to its Russia-related sanctions authorities.
Sanctions affect arbitrators, counsel and arbitration centers. Furthermore, they may have an impact on arbitral jurisdiction, arbitrability and award enforcement.
This commentary focuses on one implication of OFAC sanctions on arbitration proceedings: U.S. persons’ inability to provide arbitration services to blocked parties.
