The EU strengthens protection for European companies against litigation in Russia

According to the analysis carried out by the associated company Augusta Abogados, the European Union has adopted Regulation (EU) 2026/506 of 23 April 2026, which introduces further amendments to Regulation (EU) 833/2014 concerning restrictive measures against Russia.

Among the key developments is the introduction of an anti-suit injunction mechanism, allowing EU entities to request a court order from a Member State court preventing a Russian party from initiating or continuing legal proceedings in Russia where an exclusive jurisdiction or arbitration clause has been breached.
 

Failure to comply with such orders may lead to financial penalties aimed at compensating the potential loss suffered by the EU party, although their effectiveness will depend on the existence of assets belonging to the defendant within the EU or in third countries.
 

This measure is added to existing provisions under the sanctions regime, such as the prohibition on satisfying certain claims brought by sanctioned entities, the non-recognition and non-enforcement within the EU of foreign judgments or arbitral awards linked to sanctions, and the right of EU entities to seek compensation for damages arising from such proceedings in third countries.
 

Overall, these reforms further strengthen the legal protection of European companies against strategic litigation in Russia in the context of the sanctions regime.