International Commercial Arbitration at Lithuania
International Commercial Arbitration in Lithuania: Overview
Lithuania is a growing hub for international business and arbitration in the Baltic region, supported by a modern legal framework and access to European and international arbitration standards. It offers a transparent and arbitration-friendly environment underpinned by EU membership and international treaties.
1. Legal Framework
Law on Arbitration of Lithuania (enacted in 2011)
Lithuania’s arbitration law is largely based on the UNCITRAL Model Law on International Commercial Arbitration (1985) with amendments aligned to EU standards. It governs both domestic and international arbitration.
New York Convention (1958)
Lithuania is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, facilitating enforcement of international arbitration awards in Lithuania.
Lithuania is also bound by the European Convention on International Commercial Arbitration (1961).
2. Key Features of Arbitration in Lithuania
Modern Arbitration Legislation:
The Arbitration Law provides extensive support for party autonomy, impartiality and independence of arbitrators, and limited court intervention.
Arbitral Proceedings:
Proceedings are private and confidential. The law supports flexible procedures and recognizes arbitration agreements.
Court Role:
Courts support arbitration by enforcing agreements and awards, but intervention is limited and strictly regulated.
3. Arbitration Institutions
Vilnius Court of Commercial Arbitration (VCCA):
The main arbitration institution in Lithuania handling both domestic and international commercial disputes. It has its own procedural rules modeled on international best practices.
Other regional arbitration centers like ICC or Stockholm Chamber of Commerce (SCC) are also commonly used by parties.
4. Enforcement of Arbitral Awards
Lithuania enforces foreign arbitral awards under the New York Convention through its courts.
Awards can be set aside only on limited grounds consistent with international arbitration norms, such as invalid arbitration agreement, due process violations, or public policy.
5. Advantages of Arbitration in Lithuania
Strategic location within the EU and Baltic region
Arbitration law aligned with UNCITRAL Model Law and EU directives
Membership in key international arbitration treaties
Efficient and transparent court system supportive of arbitration
Access to recognized arbitration institutions with experienced arbitrators
Arbitration proceedings are confidential and flexible
6. Challenges and Practical Considerations
Arbitration infrastructure is still developing but growing rapidly
Parties should clearly define arbitration clauses (seat, language, rules) to avoid disputes
Legal advice recommended for cross-border enforcement or complex disputes
Sample Arbitration Clause for Lithuania
Any dispute arising out of or in connection with this contract shall be finally resolved by arbitration administered by the Vilnius Court of Commercial Arbitration in accordance with its Arbitration Rules. The seat of arbitration shall be Vilnius, Lithuania. The arbitration proceedings shall be conducted in English/Lithuanian. The arbitral tribunal shall consist of [one/three] arbitrator(s). The award rendered by the tribunal shall be final and binding upon the parties.
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