Russian Arbitration Reform: Key Changes

On 1 September 2016, the following federal laws came into force in Russia: the Federal Law On Arbitration (Arbitration Proceedings) in the Russian Federation and the Federal Law on Amendments to Certain Legislative Acts which introduced a number of changes, in particular, to the Arbitrazh Procedure Code, the Civil Procedure Code and the Law on International Commercial Arbitration (collectively, the "Laws"). Russian arbitration regulation has materially changed as a result of these Laws.

The reforms were initiated in 2013 on the instruction of the President given to the Federal Assembly with a view to developing Russian arbitration legislation. Two of the main goals of the reforms were to:

  • Provide clearer and more detailed regulation of the arbitration process in order to encourage businesses to use arbitration as a dispute resolution mechanism more actively, decreasing the workload of the state courts;
  • Fight with so called "pocket" arbitration institutions (i.e. those which are incorporated by large corporations / banks to hear disputes with their counterparties).

The Laws have made many significant amendments, most of which can be placed under the following two categories: (1) the administering of arbitration proceedings; and (2) the arbitration process. This update deals with the most significant amendments.

 

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