International Commercial Arbitration at Russia
Here’s a detailed overview of International Commercial Arbitration in Russia:
1. Legal Framework
Domestic Law
The main legislation governing arbitration in Russia is the Federal Law No. 533-FZ of 29 December 2015 on Arbitration (Arbitrazh) Courts, which regulates commercial arbitration courts.
Additionally, Chapter 4 of the Russian Arbitration Procedure Code (Federal Law No. 382-FZ of 2013) governs international commercial arbitration.
Russia also follows the Civil Procedure Code provisions related to arbitration.
International Treaties
Russia is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, ensuring enforcement of foreign awards in Russia.
Russia also signed the 1958 Washington Convention (ICSID) but has not ratified it.
2. Arbitration Institutions in Russia
International Commercial Arbitration Court (ICAC) at the Chamber of Commerce and Industry of the Russian Federation (CCI RF):
The most prominent arbitral institution for international commercial disputes.
Known for specialized rules for international arbitration.
Russian Arbitration Center (RAC) at the Russian Institute of Modern Arbitration (RIMA):
A newer institution established to promote efficient and modern arbitration practices.
Parties may also opt for international institutions like the ICC or LCIA to conduct arbitration seated in Russia.
3. Key Features of Arbitration in Russia
Party Autonomy: Parties have broad freedom to agree on procedural rules, number of arbitrators, language, and place of arbitration.
Neutrality: Arbitration offers a neutral dispute resolution forum, often preferred to avoid Russian state courts for international disputes.
Enforcement: Russian courts generally support the enforcement of arbitral awards, especially foreign awards under the New York Convention.
Appeal and Challenge: Awards can be challenged only on limited grounds such as lack of jurisdiction, violation of procedural rules, or public policy.
Language: Typically Russian, but parties may agree on any language.
4. Arbitration Procedure
Commences by filing a request for arbitration according to agreed or institutional rules.
Arbitration can be conducted by a sole arbitrator or a panel.
Evidence and hearings are conducted according to the arbitration agreement or institutional rules.
Russian courts provide limited supervision, mainly to assist arbitration and enforce awards.
5. Recognition and Enforcement
Russian courts enforce foreign and domestic arbitration awards under the New York Convention.
Enforcement proceedings usually take 1-3 months.
Courts may refuse enforcement only on narrow grounds such as fraud, violation of due process, or conflict with Russian public policy.
6. Seat of Arbitration
The seat can be in Russia or abroad, as agreed by parties.
If seated in Russia, Russian arbitration laws and courts apply for procedural oversight.
Practical Considerations
Arbitration in Russia is considered relatively arbitration-friendly but procedural delays in courts may happen.
The ICAC at the Russian CCI is a trusted institution with a solid reputation in handling international cases.
Legal representation by Russian lawyers familiar with arbitration is strongly recommended.
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