David Allen KC, Peter Ferrer and Aradhya Sethia have published a feature article on the effect of UK and foreign sanctions on contractual payment obligations in PLC Magazine, a leading journal for commercial lawyers published by Thomson Reuters. The article draws together the latest authorities and offers practical guidance on navigating this rapidly developing area of English commercial law.

As sanctions continue to play a prominent role in commercial litigation, businesses and their advisers are increasingly confronted with difficult questions concerning sanctions compliance, contractual performance, cross-border payments, and competing UK, US and EU sanctions regimes. The article highlights a number of practical themes emerging from the recent case law, including:

  • the courts’ increasingly broad interpretation of certain UK sanctions;
  • the importance of careful drafting of sanctions and payment clauses;
  • the interaction between contractual rights and licensing regimes, the impact of foreign sanctions – particularly US and EU sanctions – in disputes governed by English law; and
  • the availability of common law and statutory defences where performance is withheld or delayed.

The article considers a number of recent decisions, including Celestial Aviation Services Ltd v UniCredit Bank GmbH, Tonzip Maritime (Singapore) Pte Ltd v 2 Rivers Pte Ltd (The Catalan Sea),  AerCap Ireland Ltd v AIG Europe SA,  RTI Ltd v MUR Shipping BV, Beneathco DMCC v RJ O’Brien Ltd, and Shvidler v Secretary of State.

This article first appeared in the August 2026 issue of PLC Magazine: https://uk.practicallaw.thomsonreuters.com/Browse/Home/Resources/PLCMagazine).

A copy of the full article is available to read here.

David, Peter, and Aradhya advise and act across the full spectrum of sanctions-related disputes, including matters involving banking and financial services, international trade, insurance, fraud, company law, and general commercial litigation. They welcome instructions in all areas of sanctions law and related commercial disputes.