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Force Majeure and Sanctions

Force Majeure and Sanctions
Date: 11.09.2024

Force majeure exempts an affected party from liability for failure to perform or improper performance of its obligations while carrying out business activity, where proper performance is temporarily impossible.

Accordingly, the starting point in application of force majeure is to determine whether the performance of an obligation has become impossible in full or in part. In the current circumstances, the "special operation in Ukraine" itself does not make it objectively impossible to carry out work, render services or perform other obligations in the Russian Federation. If any sanctions, countersanctions or any other restrictions imposed inside or outside Russia or their consequences make it impossible for a debtor to perform its obligations, such event may fall under force majeure.

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