Arbitration analysis: The German Federal Court of Justice (Bundesgerichtshof, FCJ) held that Russian parties remain exempt from providing security for costs in German proceedings under Article 17 of the 1954 Hague Convention on Civil Procedure. The court confirmed that neither Russia’s invasion of Ukraine nor the EU’s sanctions regime affect this treaty‑based procedural protection. In particular, the FCJ found that the EU’s ‘no claims’ sanction mechanism (Art. 11 para. 1 of Regulation (EU) 833/2014) does not extend to procedural rights such as the procedural exemption from providing security for costs. The FCJ further held that difficulties in enforcing cost awards are irrelevant under Section 110(2) No. 1 of the German Code of Civil Procedure (ZPO), which turns solely on the continued existence of Germany’s international treaty obligation. For practitioners, the decision confirms that security for costs in enforcement and related proceedings remains a question of formal treaty continuity, not of sanctions policy, reciprocity or practical enforceability—entrenching a structural asymmetry in disputes involving Russian parties. Written by Annekathrin Schmoll, associate attorney at Gibson Dunn & Crutcher and Katharina Heinrich, associate attorney at Gibson, Dunn & Crutcher.