“The disputed contractual clauses contained limitations on using the turbines in the Crimea, but it cannot be qualified as undermining Russia’s sovereignty.

The supplier is fully entitled to restrict the area of use of its products, since such restriction is caused by the presence of specific sanctions which violation could have resulted in adverse consequences for it. Thus, Siemens’ actions were well within the law: the company performed the provisions of the already signed contract.

The Russian company had the right to disagree to cooperate on such terms, but they did not. If the court satisfies the lodged claims, then the Russian companies may obtain a convenient tool to circumvent the sanctions. Although, this may lead to refusal to cooperate by those companies which do not wish to face any negative consequences due to potentially violating the sanctions”, commented Denis Frolov, Partner, BMS Law Firm.