Sanctions which were imposed by unfriendly nations on the Russian state, legal entities and individuals are unilateral coercive measures which have no basis in international law. They are indiscriminate since they apply to large groups of individuals and legal entities on the basis of their nationality. They are aimed at infringing on the sovereign rights of the Russian state and changing its policy. For compensation of losses which Russian companies have suffered abroad the latter should be provided with the opportunity to demand that the assets of foreign companies from the relevant unfriendly jurisdictions should be transferred to the external management of the Russian companies. Russian investors are also entitled to seek protection under international investment treaties due to the fact that the expropriation of their property was carried out without legal grounds and without payment of prompt, effective and adequate compensation. The legal reality which exists in relations with unfriendly countries demonstrates the crisis of traditional dispute resolution mechanisms and the necessity for establishing new effective international instruments.