The UK Foreign & Commonwealth Office (the “FCO”) has launched an informal consultation into the feasibility, benefits and risks of introducing and implementing a new type of sanction: “contract sanctions”. Under these sanctions, contracts entered into by targeted regimes would be rendered unenforceable in the courts of participating states. The FCO is particularly interested in the identification of possible risks associated with contract sanctions. For example, could the imposition of such sanctions make lending to targeted regimes an attractive high risk/high reward opportunity? Responses to the consultation  are requested by 14 March 2014.

Consultation Document