Mandatory Rules v. Consent-Based Tools: EU Public Policy and Sanctions-Related Arbitration

Reguli obligatorii vs. mecanisme întemeiate pe consimţământ: ordinea publică la nivelul UE şi arbitrajele care implică sancţiuni

Jake LOWTHER, LL.M.

Raoul J. SIEVERS, LL.M.

ABSTRACT

As of 20 November 2024, the future of sanctions-related arbitrations in the EU is in the hands of the CJEU. In NV Reibel v JSC VO Stankoimport, the Svea Court of Appeal in Stockholm lodged a request for preliminary ruling questioning the arbitrability of claims covered by EU sanctions regimes and their EU public policy dimension. This article examines whether the provisions of Council Regulation (EU) 833/2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine, and in particular Art. 11 of the Regulation, pertain to EU public policy.

Inspired by the CJEU's previous decisions on questions of EU public policy, the article establishes a three-prong test to determine the...