Anti-sanctions law India: Government Explores EU-Style Blocking Law

Context: Anti-sanctions law India

India is examining an European Union–style anti-sanctions (blocking) law after foreign firms withdrew services to Indian companies citing external sanctions (Nayara Energy case).

Issue

  1. Indian firms rely on foreign digital/financial services
  2. Providers may stop services due to home-country sanctions (extra-territorial)
  3. Threat to economic sovereignty + critical infrastructure

Trigger

  1. Microsoft suspended services to Nayara Energy
  2. Disrupted data, software, communication systems
  3. Exposed dependence on foreign service providers

India’s plan

  1. Exploring a blocking law (EU model)

Likely features

  • Bar foreign firms from complying with external sanctions in India
  • Ensure services via India-based entities
  • Make such sanctions invalid within India

European Union model

  1. EU Blocking Statute (Regulation 2271/96, 1996)

Key provisions

  • Ban compliance with extra-territorial sanctions
  • Nullify foreign rulings
  • Allow damages recovery

Aim

Protect firms from United States sanctions (Iran, Cuba)

Anti-sanctions law India
Anti-sanctions law India
Anti-sanctions law India
PYQ – 2019, Ans – C

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