International commercial arbitration in Russia

When an agreement cannot be reached, the company's aim is not only to protect the interests of the business and get a decision in its favour. It is important to enforce the court order. Therefore, circumstances such as reciprocal sanctions by the states of the parties should also be taken into account. Due to moratoriums imposed today, Russian and foreign state courts may refuse to consider a claim or to accept and enforce a judgment issued by a state court of an "unfriendly" country. However, it is still necessary to go to court, as otherwise the statute of limitations will expire.

A good way out of this situation for foreign and Russian partners is an arbitration clause in the contract to hear disputes in independent international commercial arbitration. For example, in the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation. Let us see how this choice would be convenient and beneficial for your company.

Independence and business reputation. The International Commercial Arbitration Court at the CCI RF is an independent permanent arbitration institution. It is one of the largest and most respected arbitration centers in the world. The institution will celebrate its 90th anniversary in 2022. Over these years, more than 10,000 cases have been heard by the International Court of Arbitration at the RF CCI.

Every year, the International Commercial Arbitration Court at the Chamber of Commerce and Industry of Russia settles international commercial disputes involving companies from 40-60 countries. Regardless of the nationality of the claimant, more than 80% of claims are satisfied in full or in part. Its stable and predictable practice has made Russian arbitration widely known in the international business community.

Lists of arbitrators. The arbitrators specialize in a particular category of disputes within four lists - for international business disputes, national disputes, corporate disputes and sports disputes. The lists of arbitrators are non-binding and include over 300 leading specialists from 25 countries. For the convenience of the parties, the lists include name, education, place of work, academic degree and rank, specialization and foreign language skills. You may also choose an arbitrator not on the lists, including one from a law firm you trust. As a rule, the tribunal is made up of three arbitrators. Each party chooses one arbitrator and a substitute arbitrator.

Place and language of arbitration. Unless otherwise agreed by the foreign company (non-resident), oral hearings shall be held in Moscow. Hearings can also be conducted through the use of videoconferencing systems. This allows you and your representatives participate in hearings directly from your home country, or another country at your location. In arbitration proceedings, the rules of Russian international arbitration also allow documents to be exchanged electronically. By agreement between the parties, the dispute is resolved without an oral hearing, based on written materials.

The language or languages to be used in the arbitration shall be determined by the parties themselves. If no agreement is reached, the arbitration will be conducted in Russian.

Applicable law. Given the place of arbitration, when applying to the International Commercial Arbitration Court at the CCI RF, the applicable procedural law for the arbitration (in most cases) will be Russian law. Notwithstanding your choice of Russian arbitration, you are not bound by the substantive law of the Russian Federation. The parties can choose any applicable law in the contract, including foreign law , international law. But in all cases, the arbitral tribunal will decide in accordance with the terms of the contract and applicable international customary law. Arbitration costs. Arbitration fees in Russian arbitration are significantly lower than in many foreign arbitration institutions. You must pay a registration fee of $1,000 and an arbitration fee when you submit your claim. If the value of the claim is in a foreign currency, the arbitration fee must be paid in US dollars. At your request, the Registry may allow you to pay the fee in a different currency. The amount of the arbitration fee depends on the value of your claim. For example, if the amount in dispute is under $10,000, the fee is $3,000 and if the amount in dispute is over $10,000,000 it is $90,500 + 0.14% of the amount over $10,000,000.

If the case is heard by a sole arbitrator, the arbitration fee is reduced by 20%. If the proceedings are terminated at the first hearing without an award, the arbitration fee will be reduced by 25%. The fees will be imposed on the party against whom the award is made. All types of written and oral evidence are admissible in the process: explanations of the parties, witness statements, expert opinions, etc. Representation. You may pursue your case directly or through a representative(s). You may appoint a non-Russian entity (an individual) as your representative.

Confidentiality. A hearing will be held in private, unless you have agreed otherwise. All parties to the arbitration are required to keep the information about the dispute confidential. The most important thing is to be able to communicate in the same language as the arbitrators. Time frame for resolving a dispute. As a rule, international commercial disputes before the Arbitration Court under the Russian Chamber of Commerce and Industry are resolved within no more than 180 days from the date of appointment of the arbitrators.

Recognition and enforcement of awards. An arbitration award is definitive, enters into force as soon as it is made, and is subject to immediate enforcement. The Russian Federation, in common with the vast majority of European states, is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Public courts in 170 countries around the world therefore recognise and enforce decisions of the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation. Your choice of representation in Russian arbitration directly determines whether your lawyer will be able to understand your problem in a foreign language and convey the legal details in Russian to the arbitrators of the International Commercial Arbitration Court, and, consequently, the success of the case and its subsequent recognition and enforcement. You can get highly professional legal assistance (advice in foreign languages and representation in Russian) at all stages of arbitration proceedings in Russia, both as a plaintiff and a defendant, from the Belarusian law company "Economic disputes" LLC. The company's lawyers have many years' experience of work in arbitration and are authors of analytical articles on arbitration practice and representation. Our knowledge of foreign languages allows us to communicate with clients from foreign countries (including English-speaking ones) and prepare documents without an interpreter.

Contacts for the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation.

Address (for postal services): 109012 Moscow, ul. Ilinka, 6/1, c.1.

Actual address: 5/2 Ilyinka St., Moscow 109012

Telephone: 8-495-620-0171, fax: 8-495-620-0153

E-mail: mkac_arbitration@tpprf.ru

ICA's official website in Russian, English and German can be found at https://mkas.tpprf.ru/.