Russian judgment on US export controls & force majeure
17 September 2025
In Case No. A75-24833/2024 the Russian Arbitrazh Court in Yugra rejected MN Medical’s argument that it was not liable for failing to deliver medical equipment to Yugra District Hospital because of US export restrictions introduced in 2023, which required a re-export licence. MN Medical said the restrictions amounted to force majeure and excused its non-performance. The Court disagreed and awarded the hospital 375,000 Rubles in damages.
Force majeure is defined in Russian law as “extraordinary and unavoidable circumstances”. Under paragraph (2)(d) of Resolution 783, parties are not liable for contractual penalties if foreign sanctions place performance beyond their control, making it impossible to fulfil the contract without amending its terms.
The Court said there was no evidence that it was impossible to deliver the equipment under paragraph (2)(d). The only reason MN Medical provided for not fulfilling their obligations on time were the US restrictions of May 2023, five months after delivery was due. The Court held there were no extraordinary or unavoidable circumstances, and the conditions for force majeure were not met.
This is the second case between Yugra District Hospital and MN Medical that Global Sanctions has reported – see our Russian judgments pages for more.
