ABOUT THE PROTECTION OF THE INTERESTS OF PARTICIPANTS OF FOREIGN TRADE AGREEMENTS, WHICH HAVE SUFFERED LOSSES AS A RESULT OF INTERNATIONAL ECONOMIC SANCTIONS

Abstract

Abstract. The imposition of economic sanctions significantly affects international relations
entities. The imposition of sanctions makes contractual obligations legally impossible. Impossibility
of performance of the contract entails the suspension of the contract or its termination,
resulting in significant negative property complexity for the contracting parties, what is experiencing
in bearing the damages under the contracts, as well as liability for non-execution of a
contract. But regardless of the contract liability decision, the parties of the contract incur a loss,
which is caused by the imposition of sanctions and cannot be covered by contractual arrangements.
Therefore the issues of compensation for contract losses incurred by the parties are not
less urgent.
The participants of foreign trade agreements, which have suffered losses as a result of international
economic sanctions, have the right to claim compensation for damages directly caused
by the imposition of sanctions, out of the proceeds of the state budget, implementing economic
sanctions, as well as by referring to international institutions. Therefore, when reforming the national
legal regulation it is necessary to provide guarantees for the rights of business entities in
connection with the implementation of international economic sanctions.
Key words: sanctions, foreign trade agreement, the UN Security Council, contract, liability,
compensation for losses, force majeure.