Ukraine sanctions trigger statutory deferral of claim, barring enforcement of arbitral award

In Decision 4A_305/2025, the Swiss Supreme Court dismissed an award creditor's appeal against the cantonal court's refusal to enforce an LCIA award, upholding the dismissal of the enforcement action on different grounds. The creditor's Russian shareholder was subject to Swiss financial sanctions under the Ordinance on Measures Connected with the Situation in Ukraine (Ordinance). The Swiss Supreme Court ruled that the prohibition under article 15(2) of the Ordinance to directly or indirectly make funds available to sanctioned entities, or entities controlled by them, created a statutory deferral of the claim, barring enforcement while the sanctions remain in force.