International Commercial Arbitration at Moldova
Certainly! Here's a detailed overview of International Commercial Arbitration in Moldova:
International Commercial Arbitration in Moldova
1. Legal Framework
Moldova’s arbitration is governed primarily by the Law on Arbitration No. 160 (2017), which aligns closely with the UNCITRAL Model Law on International Commercial Arbitration (1985, amended 2006).
The law governs both domestic and international commercial arbitration.
Moldova is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, ensuring smooth enforcement of foreign arbitration awards.
2. Key Features of Moldovan Arbitration Law
Party autonomy is respected: parties can freely choose arbitrators, applicable law, language, and place of arbitration.
Arbitration agreements must be in writing.
Arbitration proceedings are confidential unless parties agree otherwise.
Courts have limited jurisdiction to intervene, mostly to support arbitration (e.g., appoint arbitrators if parties fail to agree), grant interim measures, or set aside awards.
The law provides for recognition and enforcement of both domestic and foreign arbitral awards.
3. Arbitral Institutions
Moldova does not have a widely known, internationally prominent arbitration institution.
Arbitration is often conducted ad hoc or under the rules of established international arbitration centers such as:
International Chamber of Commerce (ICC)
London Court of International Arbitration (LCIA)
Vienna International Arbitral Centre (VIAC)
Local arbitration centers exist but are less frequently used for international disputes.
4. Court Role
Moldovan courts generally respect arbitration agreements and stay litigation where a valid arbitration clause exists.
Courts provide support for arbitration by appointing arbitrators and granting interim relief.
Courts may review arbitral awards only in limited circumstances, such as when awards violate public policy or procedural fairness.
5. Enforcement of Awards
Foreign arbitral awards are enforceable under the New York Convention.
Enforcement is relatively straightforward in Moldova, provided that the award does not contradict Moldovan public policy.
Moldovan courts actively enforce arbitration awards and support international arbitration principles.
6. Challenges and Opportunities
Challenges:
Lack of a major local arbitral institution with international recognition.
Limited awareness among some local businesses about arbitration benefits.
Opportunities:
Moldova’s strategic location between the EU and Eastern Europe makes it an attractive arbitration venue.
The arbitration law’s alignment with international standards increases investor confidence.
Growing foreign investment and trade relations promote the use of arbitration.
Summary
Moldova offers a modern and arbitration-friendly legal framework based on international best practices. It recognizes and enforces foreign arbitral awards through the New York Convention and supports arbitration with limited judicial intervention. While local institutional arbitration is less developed, parties often prefer ad hoc arbitration or established international institutions for cross-border disputes.
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