international law | In Principle

It has been over 450 days since the outbreak of a full-scale war in the very heart of Europe. As the courageous defence by the Ukrainian nation continues and the fate of war is yet to be decided on the battlefield, the legal implications of the conflict and the prospects ahead also draw public attention.

The NYSBA 2023 Warsaw Spring Meeting raised two intertwined topics: new investments into the region and the upcoming reconstruction of Ukraine.

The NYSBA 2023 Warsaw Spring Meeting raised the vital issue of compensation for damage inflicted by the Russian invasion of Ukraine.

One of the sessions at the spring meeting of the New York State Bar Association in Warsaw in March 2023 was devoted to questions of accountability of the Russian Federation for crimes it has committed as a potential driver of changes in international criminal law.

In agreements with foreign counterparties, provisions on which courts have jurisdiction to resolve disputes are standard, but they are often drafted by rote, without deeper reflection. If a dispute unexpectedly occurs, this can lead to serious problems. Based on our experience, we suggest how to avoid the worst mistakes.

At the EU and national levels, severe economic sanctions are in place against many entities, mainly Russian. After entry into force of the Sanctions Act (the Act on Special Solutions for Countering Support of Aggression Against Ukraine and Protecting National Security of 13 April 2022), first published on 26 April 2022, the Polish sanctions list maintained by the Minister of the Interior and Administration took on particular significance. The purpose of its creation is clear: to counter support for Russia’s aggression against Ukraine. Nevertheless, the criteria for inclusion in the list are not clear-cut, and the procedure for issuing a listing decision greatly limits the right to defend against wrongful inclusion, as Polish entities can easily be included in the list.

Until now, the obligation to comply with the EU economic sanctions regime has arisen directly from the EU regulations, in particular Regulation 833/2014 and Regulation 765/2006 containing restrictive measures against Russian and Belarusian entities, but violation of bans has not been subject to fines. This situation should change, as a bill on special solutions to prevent the support of aggression against Ukraine and to protect national security is being taken up in the Polish parliament.

Some 70–80 extradition requests are filed every year with the Polish authorities, to turn over persons to stand trial before a foreign court or serve a punishment abroad.

The Russian Federation has not remained passive in the face of sanctions imposed on it for its invasion of Ukraine. In retaliation, Russia has imposed its own sanctions on Western countries and has announced the nationalisation of property of companies ceasing or suspending their activities in Russia. However, this has not exhausted its arsenal yet, and it may not be long before there are further actions by the Russian Federation in the international arena challenging the legality of the measures hitting the Russian economy.

24 February 2022, the day when Russian troops unlawfully invaded the territory of Ukraine, proved to be the beginning of a test of European solidarity, and of the resilience of the European economy. On a macro level, a huge question has arisen: Can the European economy function without eastern markets? At the micro level, businesses are faced with dilemmas of how to deal with counterparties from that region, particularly in the context of existing long-term contracts at an advanced stage of completion.

Businesses are to be held legally accountable for failing to exercise due diligence to prevent human rights violations from occurring in their supply chains. On 23 February 2022, the European Commission published a long-awaited draft Directive on Corporate Sustainability Due Diligence.

On 21 December 2021, the Court of Justice of the European Union issued a long-awaited judgment on the interpretation of the EU Blocking Statute in C-124/20, Bank Melli. Although the ruling does not dispel all doubts, it does set the direction for interpretation and shows that even imperfect regulations must be applied.