DRL v DRK is the latest case in Singapore dealing with the fall out from the sanctions imposed on various Russian entities resulting from the invasion of Ukraine in 2022. Due the sanctions, the applicant was not able to make any payment, including to their lawyers and deposits to the arbitration institution.
Ultimately the respondent resorted to Article 32(2)(c) of the Model Law, which provides for the tribunal to order the termination of arbitration proceedings when they become unnecessary or impossible.
The High Court has made it clear how the issue of impossibility in arbitrations should be addressed.
Please find the full update attached.