Lugovoy Law

In June 2020, Russia enacted the so-called Lugovoy Law, Article 248.1 of the Russian Arbitrazh Procedural Code, which allows Russian courts to assume exclusive jurisdiction over sanctioned persons, ignoring contractual choice-of-court and arbitration clauses. Article 248.2 authorizes anti-suit and anti-arbitration injunctions by Russian courts to enforce that exclusive jurisdiction.  Article 248 has been invoked repeatedly in…

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….