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Andrew Rose

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In two judgments in the last year, the English High Court has examined sanctions clauses in detail. Each case involved a refusal by parties to pay under an agreement, citing risks under US extraterritorial (“secondary”) sanctions. The Court’s judgments in these cases raise a number of issues for the drafting of sanctions clauses, and highlight the need to consider carefully the scope of the contract and the impacts that US sanctions may have upon its performance.

On 14 October, the United States and European Union each adopted sanctions measures targeting Turkey, in response to Turkey’s military offensive in northern Syria.  Subject to certain exceptions discussed further below, the US measures under a new Syria-related Executive Order (“New Syria EO“) took effect immediately and authorize sanctions targeting parties engaging in certain Syria-related activities, the Government of Turkey and Turkish Government officials, and certain sectors of the Turkish economy.

The EU measures are expected to come into effect shortly.