Russian oligarchs and investors are challenging European sanctions through arbitration procedures, demanding at least €53 billion, according to a report by the European Trade Justice Coalition (ETJC).
The challenges rely on investor-state dispute settlement mechanisms (ISDS), which allow disputes between investors and governments to be resolved via arbitration rather than national courts. ISDS clauses are included in many trade and investment agreements.
The ETJC report reveals 24 public ISDS cases aimed at contesting sanctions against Russia. Thirteen of these cases were launched in 2025.
Claimants are demanding at least €53 billion, though the actual sum may be significantly higher. This figure nearly matches the EU’s military aid budget provided to Ukraine since 2022.
The Belgian organisation CNCD-11.11.11, which contributed to the report, has long criticised arbitration mechanisms in these investment treaties. It argues that they enable investors to bypass national judicial systems and sue governments for large sums over legislative or political changes they believe harm their interests.
“These parallel tribunals are being used to challenge sanctions designed to end Russia’s brutal and illegal war. If we want to stop sanctioned oligarchs from dragging Europe—and Ukraine—into billion-euro lawsuits, investment treaties with Russia and Ukraine must be abandoned,” said Sophie Wintgens, trade researcher at CNCD-11.11.11.
In Belgium, four Russian investors with funds held at Euroclear formally notified the government in September and October of contentious claims. The amounts they are demanding remain undisclosed. Similar lawsuits have been initiated across Europe, including in Luxembourg, Germany, France, and the United Kingdom.
