Insights into the key trendsshaping arbitration Welcome to our annual arbitration trends report The world of international arbitration isundergoing rapid evolution as businesses confrontgeopolitical uncertainty, the acceleration oftechnological change and an increasingly complex “2026 will be a defining year for internationalarbitration, with disputes expanding incomplexity, reach and strategic importancefor clients globally. The interplay of technologicalchange, geopolitical developments andregulatory innovation is transforming not justwhat is arbitrated, but how and where disputes Drawing on the insights of our global international arbitrationteam, this report identifies eleven trends that we believe will be Each trend is underpinned by our team’s practical experienceadvising clients across markets and sectors. From sovereignrisk and digital transformation to ESG compliance and newprocedural advancements, our experts share forward-looking Noiana MarigoandBoris KasolowskyGlobal Co-Heads, International Arbitration Why read this report? The trends we highlight are not just legal developments.They enable business leaders to anticipate and respond tochanging risk, regulatory and enforcement environments,which are key considerations in sustaining growth and We invite you to explore the report and connect with your usualFreshfields contact or any of the authors to discuss how these Contents Risks for businessesoperating in armedconflict zones: Risks for businesses operating in armedconflict zones: an evolving battleground Alexandra van derMeulenPartner, Gabriel FuseaSenior Associate, Tim HarknessPartner, Maria SlobodchikovaSenior Associate, Anika HavaldarSenior Associate, Joshua KellyPartner, “The scope of risk for corporates operating inconflict zones is expanding, with companies In brief The global landscape of armed conflict is the mostcomplex and crowded since the Second World War.This includes international armed conflicts (e.g. the warin Ukraine), non-international armed conflicts (e.g. civilwars in Myanmar and Sudan) and situations that maynot be straightforward to categorize (such as “drug with accountability at the international law level,demanding robust due diligence and governanceto mitigate legal and reputational risks. Alexandra van der MeulenPartner, Paris Companies now face increased exposure to sanctions,operational disruptions and other legal and reputationalrisks. As a result, we expect a surge in conflict-related The expanding risk landscape Many businesses today are deeply embedded in conflict-affectedeconomies. Energy and extractives, logistics, tech, constructionand industrial firms often provide goods and services thatsustain local markets. In addition, tech and defense companies To manage these risks, businesses should integrateconflict analysis into due diligence, strengthencontractual and investment protections, establish robust At the same time, companies looking to enter post-conflictenvironments, such as Syria or, eventually, Ukraine, faceheightened compliance and security risks arising from changing Risks for businesses operating in armedconflict zones: an evolving battleground Investors routinely invoke “full protection and security”(requiring the safeguarding of investments against harm) and“war damages” (providing compensation for losses causedby war or civil disturbance) clauses. These claims may raisecomplex issues of State responsibility, including attribution “In a world where conflict is, unfortunately, a new Joshua KellyPartner, London As countries adopt ever-complex responses to conflict, includingsanctions, export controls and asset freezes, the number andvariety of conflict-related claims will likely increase. This includes The impact on arbitration Commercial arbitration For example, in 2025, Russian investors threatened or startedarbitrations against European countries for freezing assetsfollowing Russia’s invasion of Ukraine, alleging breaches of“free transfer,” “expropriation” and “fair and equitable treatment”clauses. Moreover, investments by non-Russian investors in Conflict amplifies contractual risk. In the current geopoliticalcontext, we anticipate increased use of commercial arbitrationas parties seek remedies for payment defaults, sanctions-relateddisruptions and halted operations. Tribunals are increasinglyasked to interpret force majeure and frustration clauses, assesswhether wartime conditions justify non-performance and Litigation exposure Operating in conflict zones exposes businesses to significantand unpredictable litigation risks in the courts of the countriesinvolved in the armed conflict and elsewhere. Companies mayface lawsuits for not only direct involvement in conflict-related Investor-State arbitration Investor-state arbitration is seeing a steep rise in conflict-relatedclaims. Foreign investors have typically brought claims for lossessuffered due to forcible actions – such as property damage,project halt