In a significant decision for parties engaged in global trade grappling with increasingly complex international sanctions regimes, the English High Court has considered the meaning and effect of a sanctions exclusion clause in a marine cargo insurance policy.
The decision gives helpful guidance on the protection offered by such clauses. However, it also highlights the significant potential for conflict between EU and US sanctions regimes following the US withdrawal from the so-called “Iran deal”, the Joint Comprehensive Plan of Action (“JCPOA”), whereby sanctions relief was given in exchange for nuclear non-proliferation commitments from Iran.