Sovereign immunity is a complex topic. This bulletin highlights key points to consider, particularly when drafting or reviewing a sovereign immunity waiver clause, from an English law perspective (as applied by the English courts).

The immunity of foreign states (and separate entities exercising sovereign authority) under English law is principally dealt with under the State Immunity Act 1978 (SIA). This affords a broad immunity to foreign states from the jurisdiction of the English courts: (1) to hear a dispute and reach a judgment; (2) to recognise a foreign judgment or arbitral award; and (3) to order injunctive relief, specific performance or other execution of any judgment or award against a state’s assets, unless one of the exceptions in the SIA applies.