On 23 April 2026, the EU adopted Regulation (EU) 2026/506 amending Regulation (EU) 833/2014 concerning restrictive measures against Russia (the “Sanctions Regulation“). Among other novelties, the implementation of an “anti-suit injunction” – a procedural instrument typical of the “Common Law” system – stands out, which can be invoked by EU entities that are sued in Russia in violation of jurisdiction clauses. This measure is in addition to the one approved nine months ago to establish various remedies that allow EU entities (including Member States) to claim damages arising from litigation in third States and investment arbitrations.
The new rule determines that if an EU entity is sued in the Russian courts in relation to a contract affected by sanctions, in breach of an exclusive jurisdiction or arbitration clause, that European party has the possibility of addressing the courts of a Member State to request an order aimed at preventing the Russian party from initiating or continuing the proceedings in Russia (“anti-suit injunction”). Specifically, a new Article 11ca is inserted, by virtue of which
“Without prejudice to Articles 11a and 11b, in the event that a person referred to in point (a), (b) or (c) of Article 11(1) of this Regulation initiated proceedings before a Russian court in connection with any contract or transaction the performance of which has been affected, directly or indirectly, in whole or in part, by the measures imposed under this Regulation or under Regulation (EU) No 269/2014, in breach of an exclusive jurisdiction or arbitration clause or otherwise pursuant to Article 248.1 or Article 248.2 of the Arbitration Procedure Code of the Russian Federation or equivalent Russian legislation, against a natural or legal person, entity or body referred to in point (c) or (d) of Article 13 of this Regulation to obtain an injunction, order, relief, judgment or other Court decision, the natural or legal person, entity or body referred to in point (c) or (d) of Article 13 of this Regulation shall be entitled to obtain, in judicial proceedings before the competent courts of a Member State, a court order upholding the exclusive jurisdiction or arbitration clause and ordering the person indicated in point (a), (b) or (c) of Article 11(1) to not initiate or to discontinue those legal proceedings. Failure to observe that order shall lead to financial penalties proportionate to the potential loss which could be incurred by the natural or legal person, entity or body referred to in point (c) or (d) of Article 13 of this Regulation as a result of such violation. Payment of the financial penalties imposed by the court shall be made to the natural or legal person, entity or body referred to in point (c) or (d) of Article 13 of this Regulation that submitted the request.”
As can be seen, where the contract between the parties contains a jurisdiction or arbitration clause, the courts of the Member States are authorized to order the Russian counterpart subject to sanctions not to initiate (or to cease) any proceedings before the Russian courts.
If the addressee of the court order decides not to comply with it, he or she is exposed to having to compensate the European party for the “potential loss” that the latter may suffer. Naturally, the actual effectiveness of this measure will depend to a large extent on whether the Russian side has assets or property in the European Union or in third countries that recognise orders issued by EU courts.
This new measure is in addition to those incorporated in previous amendments to the Sanctions Regulation, which can be summarised as follows:
- European entities are prohibited from satisfying claims relating to contracts or transactions affected by the Sanctions Regulation if they are brought by (i) legal persons, entities or bodies sanctioned or controlled by them, (ii) Russian persons, entities or bodies, (iii) persons, entities or bodies acting through or on behalf of the foregoing
- Any court order, order, remedy, arbitral award or judgment from a court not belonging to a Member State issued in the context of or as a result of investor-State dispute settlement proceedings against a Member State shall not be recognized, effected or enforced in the European Union; the result of which may be the satisfaction of complaints related to the measures imposed in the Sanctions Regulation if it has been requested by sanctioned persons, entities or bodies.
- European institutions are entitled to obtain compensation, in legal proceedings before the competent courts of a Member State, for damages, direct or indirect, suffered as a result of claims brought before the courts of third countries by persons, entities and bodies that are sanctioned in relation to contracts or transactions affected by the Sanctions Regulation, provided that the affected person has no other effective access to redress in the relevant jurisdiction.
In principle, these measures must be adopted by the courts with international jurisdiction in accordance with the rules in force. However, the Sanctions Regulation provides that where no court of a Member State has jurisdiction, any EU court may, exceptionally, hear and determine the complaints described if the case has a sufficient link with the Member State of that court.