The United States imposes a wide variety of economic sanctions on foreign individuals, foreign corporations, countries, terrorist organizations, and other entities. Sanctions are an increasingly important part of U.S. foreign policy and they play a significant role in the work of the United Nations, the European Union, and some other countries. Many sanctions do not give rise to litigation, but some do. Indeed, some sanctions legislation provides a cause of action, lifts foreign sovereign immunity, or otherwise makes it easier to sue sanctioned entities in the United States.
Sanctions related to terrorism generate a lot of litigation, so we have grouped the two topics together. Sanctions are imposed for many reasons other than terrorism, however, and some terrorism-related litigation is not a product of sanctions. Finally, sanctions are a controversial topic globally, in part because it is unclear that they are effective at changing behavior and in part because they often have negative consequences for marginalized communities in the countries subjected to sanctions, including countries like Afghanistan, Iran, and Venezuela.
Potential Impact of Recent Cartel Designations
On January 20, 2025, President Trump issued Executive Order (E.O.) 14157, directing the Secretary of State to designate international criminal organizations, including drug cartels, as Foreign Terrorist Organizations (FTOs) under the Immigration and Nationality Act (INA) and as Specially Designated Global Terrorists (SDGTs) under the International Emergency Economic Powers Act (IEEPA). On February 20, 2025,…
Continue ReadingRussia’s Lugovoy Law and the Battle for Jurisdiction
Sanctions have not only complicated the enforcement of contracts—they have also begun to affect the forums in which transnational disputes may be resolved. Russia’s so-called “Lugovoy Law” allows sanctioned parties to sue in Russian courts even when they have agreed to have their disputes decided elsewhere, and it is backed by threats of steep penalties….
Continue ReadingWhy Canada’s Terrorism Exception Does Not Violate International Law
Like the United States, Canada has an exception in its State Immunity Act (SIA) for state supporters of terrorism. Canada has put Iran and Syria on the list of states against which claims for terrorism may be brought in Canadian courts. Under the SIA, Canadian courts have found Iran liable for shooting down a Ukraine…
Continue ReadingIngrid (Wuerth) Brunk, Does Foreign Sovereign Immunity Apply to Sanctions on Central Banks?
Scott R. Anderson, What’s Happening with Afghanistan’s Assets?
Jamie L. Boucher, et al., The Potential Impact of Terrorism Lawsuits Under the Antiterrorism Act on Ordinary Corporate, Banking and Sovereign Enterprises