What happened
On November 27, 2023, the ICAC at the Russian Chamber of Commerce and Industry awarded a Russian company €186,000 over the short delivery of equipment by a German company. On May 13, 2025, the Higher Regional Court of Stuttgart at the same time granted the application to recognize the award and refused the application to enforce it: payment would breach Articles 3k and 11 of EU Regulation No. 833/2014. The court stated that enforcement would be possible once the sanctions are lifted, and rejected a counterclaim to declare the ICAC award permanently unenforceable. On January 15, 2026, the Federal Court of Justice of Germany confirmed that the Russian applicant is exempt from providing security for costs, but is still considering the appeal on the merits.
Why it is notable
The first published decision by a court of an EU member state refusing enforcement of an arbitral award solely because of a sanctions ban on payment. The refusal is “temporary,” however, since the ICAC award may be enforced once the sanctions are lifted.