US, UK and EU Sanctions at a Crossroads? Converging and diverging paths in legislation, policy and enforcement and their impact on disputes

In recent years, the sanctions regimes of the US, UK, and EU have shown both convergence and divergence, influenced by geopolitical developments and significant western policy shifts. There has been unprecedented coordination and harmony, particularly in response to the conflict in Ukraine. This coordination is evident in the alignment of sanctions targeting Russian entities and individuals, and the pooling of information and resources – all reflecting a shared commitment, open consultation and discussion between these regimes. However, divergences exist: on a micro scale we see nuances of the legislation, licensing and guidance; and on a macro scale we see the bigger themes - the UK's post Brexit sanctions policy deviating gradually further from an EU which must negotiate the difficulties in managing its member states' differing priorities. Perhaps most of all, we see the new Trump Administration already making it clear that sanctions can and will be used to negotiate, but few can predict how and when that will manifest in real change to US policy, enforcement or indeed legislation, and we have already seen that the Administration will not hesitate to return to forceful unilateral approaches without concern for diverging from the UK and EU, for example in the reinstatement of the “maximum pressure campaign” against Iran and the re-imposition of the U.S. sanctions against the International Criminal Court.

In this session our experts will seek to explore the interplay between cooperation and divergence and how they have already impacted the disputes landscape, as well as looking ahead to consider what might be ahead