Disputes in Russia–China Projects

Disputes in Russia–China projects fall into disputes with counterparties and disputes within joint projects.

Disputes with counterparties concern shipments, contract work, services and premises: payment and return of prepayments, quality and extent of performance, contractual penalties for delay, termination, objections to claims against the company. The main work lies in supporting the facts with documents and in the enforceability of the decision: the outcome depends both on the merits of the claims and on whether the other party has assets.

Disputes in joint projects concern management and distribution of results, decisions of management bodies, exit and acquisition of stakes, and rights to property, technology and designations. At the same time, the mechanisms provided for in the project documents are assessed: they often lead to a result faster than proceedings.

China-specific considerations

• Location of assetsAt the outset, it is established where the other party's assets are located, and the forum is chosen accordingly.
• Written evidenceThe outcome of a case is determined by written evidence: the contract, specifications, certificates, payment documents and correspondence. Arrangements from negotiations that are not reflected in documents are harder to prove, and the assessment starts with what has been documented.
• Documents executed in ChinaPowers of attorney, constituent documents and evidence from China are submitted apostilled and translated, and their preparation is included in the case schedule from the very beginning.
• Costs and their recoveryIn addition to the costs of conducting the case, there are costs of expert examination, translation and certification. Their recovery at the end of the case is, as a rule, incomplete, and the expected costs are assessed in advance.
• Contract clauseGoverning law and dispute resolution provisions affect timing, costs and enforceability more than may appear at signing. In existing contracts, they are assessed before a dispute arises.

• Opinion on prospectsA written assessment of the dispute with courses of action, the expected outcome and costs.
• Settlement materialsClaims, replies and negotiation documents.
• Procedural documentsApplications, responses, motions and the position on the case, filed with the court.
• EvidenceApostilled and translated documents from China, authenticated correspondence.
• Enforcement and recognition materialsDocuments for the enforcement of the decision and for the recognition of decisions of PRC courts and arbitral tribunals.

The outcome of the service is the work performed within the scope agreed with the client.

1. Materials

   The position is built on the documents and the circumstances of the case; the following points are relevant.

   • ContractThe contract with all annexes, governing law and dispute resolution provisions.
   • PerformanceDocuments on performance, payment documents and the calculation of claims.
   • CorrespondenceThe parties' correspondence, including in messaging apps, and information on the participants' accounts.
   • Documents from ChinaDocuments on the company's status and authority, evidence executed in China.
   • The other partyKnown information on its location, assets and accounts.
   • Client's objectiveAn acceptable outcome and plans for the future relationship.
   • Upcoming datesScheduled hearings, claims and notices received.

2. Assessment

   On the basis of the materials, the strengths and weaknesses of the position, the risks and the possible courses of action are identified.

3. Plan

   For the chosen option, a plan is drawn up: the sequence of steps, timing and scope of work.