Anti-Russia Sanctions to Be Recognized as Force-Measure in Russia

The Russian Federation Chamber of Commerce and Industry (the “Chamber”) proposes to consider
sanctions introduced by western countries against Russia to be force-measure for the purpose of
fulfilment of internal Russian contracts (Letter No. PR/0181 dated March 22, 2022).

The effective Russian legislation does not recognize such circumstances as breach of contract by the
debtor’s contractors or unavailability of certain goods in the market as force-measure. However, in the
current legal environment, many Russian producers of equipment, electronic devices and other hi-tech products are unable to fulfil their contractual obligations towards Russian customers because some of their foreign contractors seeking to comply with the anti-Russia sanctions suspend the supply of parts and components manufactured outside of Russia.

The Russian lawmakers are supposed to consider the proposed amendments to the current force measure regulations. In the meantime, the Chamber proposed to suspend the issuance of force-measure certificates for contracts affected by the anti-Russia sanctions until the adoption of the amendments to the force-measure regulations.

The Russin & Vecchi attorneys have been actively following the development of trends in the sanctions policies since 2014 and have substantial experience in advising Russian and foreign businesses on sanctions-related legal issues.

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