In late November 2018, the Russian Arbitration Association (“RAA”) published a detailed study on the application of the New York Convention in Russia between 2008 and 2017. The Working Group of the RAA analysed 10 consecutive years of case law on the recognition and enforcement of foreign arbitral awards in the Russian courts. The study provides valuable statistical data on the success rates of Russian enforcement proceedings under the New York Convention and uncovers interesting trends for those looking to enforce in the jurisdiction.
Tag: Alexei Panich
As discussed in our recent blog post, the Moscow Arbitrazh Court and appeal courts recently found that a reference to the arbitration rules of an arbitral institution was not sufficiently clear evidence that the parties had agreed on that specific institution to administer the resolution of their disputes. The case related to the ICC standard arbitration clause and the ICC has applied to the Russian Supreme Court for clarity on its approach.
However, in the meantime, the ICC has issued an additional modified standard arbitration clause “to take account of the requirements of national laws and any other special requirements that the parties may have“. The ICC then proceeds to state that it is “prudent” for parties wishing to have an ICC Arbitration in Mainland China or in Russia “to include in their arbitration clause an explicit reference to the ICC International Court of Arbitration“.
The modified clause proposed by the ICC is as follows:
“All disputes arising out of or in connection with the present contract shall be submitted to the International Court of Arbitration of the International Chamber of Commerce and shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules.”
For further information, please contact Alexei Panich, partner, Nick Peacock, partner, Alexander Khretinin, senior associate, or your usual Herbert Smith Freehills contact.
According to Russian media, the ICC has recently applied to the Russian Supreme Court (“SC“) asking that it clarify the approach of Russian courts to the ICC standard arbitration clause demonstrated in one of their cases (No. A40-176466/17). In this case the Moscow Arbitrazh Court and appeal courts (including the SC), found that a reference to the arbitration rules of an arbitral institution was not sufficiently clear evidence that the parties had agreed on that specific institution to administer the resolution of their disputes.
The last two years have seen considerable development of Russian arbitration law and practice, with changes to Russian arbitration law intended to enhance Russia’s market reputation as an arbitration-friendly jurisdiction. In a further development, it was recently announced that the Singapore International Arbitration Centre (SIAC) and the Institute of Modern Arbitration (IMA) of the Russian Federation have entered into a Memorandum of Understanding intended to support and promote the development of international arbitration in Singapore and Russia. Continue reading
We are delighted to share with you the latest issue of the publication from Herbert Smith Freehills’ Global Arbitration Practice, Inside Arbitration.
In addition to sharing knowledge and insights about the markets and industries in which our clients operate, the publication offers personal perspectives of our international arbitration partners from across the globe.
Ever since the introduction and then expansion of international sanctions on Russia (in particular by the US and the EU), arbitration practitioners have questioned whether this will prompt a change in the party selection of international arbitration in Russia-related commercial agreements. Specifically, whether historically popular arbitral venues outside Russia (London, Stockholm and others in Europe) will see a decline in favour of venues in Asia (e.g. Singapore, Hong Kong and others). Anecdotal evidence suggested that several Russian parties were indeed looking East (see our prior blog post here). Now however a survey conducted by the Russian Arbitration Association (“RAA”) suggests that despite the introduction of sanctions, the arbitration landscape has remained relatively stable with fewer changes than might have been anticipated.
The RAA Survey published earlier this year indicates that arbitration is still the preferred method of dispute resolution and that the historically prevalent venues of London and Stockholm remain for now the most preferred seats outside of Russia, with Geneva and Paris also remaining (slightly) preferred to Singapore and Hong Kong. The ICC, SCC and LCIA remain heavily favoured as overseas arbitral institutions, while English law remains the most common choice of parties alongside Russian law.
The survey nevertheless indicates that choices of Russian law and a Moscow seat of Arbitration are on the increase and that Asian arbitration seats (as well as Dubai and New York) are being considered and used by parties to Russia-related commercial contracts.