Q&As

What are the legal issues for contracts impacted by war and sanctions following the Russian invasion of Ukraine?

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Published on: 28 February 2022
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Introduction

The Russian invasion of Ukraine has seen traditional warfare and military conflict within the geographical parameters of a nation and the increased potential for cyber attacks affecting both national governments and global corporations. The US, UK, Europe and other countries have responded to the invasion by introducing a package of Sanctions upon Russia and individual Russians, including financial sanctions, trade embargoes, export controls, and asset-freezes, as well as the removal of certain Russian banks from the SWIFT payment system. Sports boycotts have prompted the cancellation of events and seen dropped sponsorship deals. Individuals in Ukraine are seeking refuge or being conscripted, reducing the labour force, and infrastructure has been severely damaged. Travel to and from the affected area is severely restricted. The consequences of the conflict within the first week alone have been far-reaching and fast-moving.

Any of these factors alone or in combination mean that performance under contracts—whether with Russian or Ukrainian parties (as primary or sub-contractors), or which rely upon these geographies

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Jurisdiction(s):
United Kingdom
Key definition:
Contra definition
What does Contra mean?

A sum due by the client to the debtor which may be set-off against a receivable.

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