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Once, between parties to a contract, a dispute arising out of sanctions imposed by a third country is raised before dispute resolution authority, the authority can apply the sanctions to the contract and obligation of the parties thereto as “overriding mandatory rules” only if three significant requisites are fulfilled: “application worthiness of the sanction”, “close connection between the disputed contract and enacting state” and “prevalence of the benefit of a decision to give effect to a sanction over a decision to disregarding it”. Lack of each of the requisites will preclude the application of the sanctions enacted by a third country. This research will provide an answer to this question: concerning a sanction enacted by third countries what the nature of “application worthiness requisite” is what the criteria to fulfill this requisite are. Sanctions enacted by a third country will be worth applying as an overriding mandatory rule only if the object and purpose of the sanctions require considering it. I.e., according to the standards of the state of seat (in court proceedings) and the standards acceptable by the international community (in arbitral proceedings) benefits secured by means of sanctions must be “legitimate and be worthy of protection”, and the sanction must be a necessary and proportional means to achieve its purpose as well.

Keywords: sanctioned imposed by a third country, the proportionality of sanctions to its purposes, the necessity for applying a sanction, overriding mandatory rules, the legitimacy of purpose of a sanction, object and purpose of a sanction.

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