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Arbitration and Enforcement of Arbitral Awards in Russia

A dispute is referred to arbitration if an arbitration clause in the contract so provides. Applications to set aside an arbitral award and for a writ of execution where the award is not complied with are heard by a state court.

We are most often instructed by:

  • Parties to a contract agreeing an arbitration clause
  • Claimants and respondents in Russian and foreign arbitration
  • Creditors and debtors under arbitral awards

The information on this website is provided for information purposes only and does not constitute a public offer.

What the Service Includes

Timing and Fees
–timing on request
from ₽fee on request

Timing and fees are indicative and are confirmed when the engagement is agreed.

01 / Overview
Choosing arbitration

The procedure for resolving a dispute is determined by the contract. An arbitration agreement is concluded in respect of disputes that may arise or a dispute that has already arisen and, as a general rule, is amended by agreement between the parties. The content of the clause is checked when the contract is concluded, before any dispute has arisen.

The clause is checked to establish whether it is capable of being performed. An inaccurate name of the institution, inconsistencies between contract terms, or a simultaneous reference to arbitration and to a state court may lead to a jurisdictional dispute before the case is considered on its merits. Certain categories of disputes cannot be referred to arbitration: the restrictions are set by the Arbitrazh Procedure Code, the Civil Procedure Code and other federal laws. It is checked separately whether the dispute falls within the exclusive jurisdiction of the Russian commercial (arbitrazh) courts, including in cases involving persons subject to restrictive measures.

Arbitration differs from proceedings in a state court. The parties may determine the number of arbitrators and the procedure for their selection. In domestic arbitration, unless the parties have agreed otherwise and unless federal law provides otherwise, the proceedings are confidential and the case is heard in private. Arbitrators' fees are determined by the institution's rules. These features are weighed against the value of the dispute when choosing how it is to be resolved.

A state court does not review the dispute on its merits: an award may be set aside, or a writ of execution refused, only on the grounds established by law. Objections that the arbitration agreement has not been complied with must be raised without undue delay; otherwise, as a general rule, the right to raise them is lost.

Enforcement of an award against a foreign party depends on where its assets are located and on the procedure for recognizing arbitral awards in the state where enforcement is sought. Enforceability is assessed before the arbitration begins, when the dispute resolution procedure is chosen.

02 / Categories
Categories of issues
  • Contractual claimsDisputes over debts, the quality and scope of performance and termination of contracts, heard under the institution's rules.
  • Jurisdictional disputeThe other party's objections to the case being heard by an arbitral tribunal, or a claim filed with a state court in breach of the clause. A position is prepared for both the arbitral tribunal and the state court.
03 / Outcome
Service Outcome
  • Opinion on prospectsA written assessment of the clause or the position with possible courses of action and the costs of each.
  • Arbitration clauseA draft clause or comments on a clause proposed by the other party.
  • Procedural documentsDrafts of the statement of claim or response, motions and applications.
  • Attendance at hearingsRepresentation at hearings of the arbitral tribunal and the state court.
  • Enforcement materialsApplications to the state court for a writ of execution or for recognition and enforcement of the award.

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

04 / Preparation
What the position is built on
  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, the framework agreement and documents for related transactions.
    • PerformanceDocuments on performance of the contract, the parties' correspondence and the calculation of claims.
    • Arbitration materialsThe statement of claim, the response, procedural orders of the arbitral tribunal and correspondence with the institution, if proceedings have already begun.
    • AwardThe text of the arbitral award and information on compliance with it.
    • Other partyKnown information on its location, assets and accounts.
    • Client's objectiveAn acceptable outcome and plans for the future relationship.
    • Upcoming datesScheduled hearings 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.

05 / Projects
Selected Projects
01 / 05

Appeals against court rulings

Dispute over a director's personal liability: rulings set aside by the Supreme Court of the Russian Federation

Challenge

The lower courts granted the claims of the insolvency administrator and the creditors to hold the director of a bankrupt company personally liable for its debts.

What was done

The case was taken to the Supreme Court. The good faith of each management decision was proved, and the Supreme Court set aside the rulings of the lower courts.

Challenging Transactions

Invalidation of a chain of transactions used to divert a debtor's assets

Challenge

Shortly before its insolvency, the debtor diverted its assets through a chain of formally independent transactions, each of which looked like an ordinary business operation.

What was done

The full chain was reconstructed, and the interconnection of the transactions and the invalidity of each link were proved. The assets were returned to the bankruptcy estate in full.

Recovery of Damages

Full recovery of damages from a former general director

Challenge

The former director caused losses to the company, expecting that it would not be possible to gather evidence: numerous transactions, a branching structure and blurred chains of cause and effect.

What was done

A systematic analysis was carried out: the chronology of decisions was reconstructed, the link between the transactions and the damage was identified, and bad faith was proved. The damages were recovered in full; the court granted the claims without any reduction.

Defence against challenges

Protecting the client's ownership against challenges to transactions in a bankruptcy case

Challenge

There were attempts, by challenging transactions, to bring the client's property – acquired, paid for and in commercial use – into the bankruptcy estate of an insolvent counterparty.

What was done

The legal position was built on the independent nature of the client's ownership. The court dismissed all the claims challenging the transactions, and the assets were retained in full without concessions or settlement agreements.

Challenging resolutions

Challenge to general meeting resolutions that blocked the distribution of profits

Challenge

The majority participant systematically blocked the distribution of profits by voting at the general meeting. The company was generating income, but the minority participant did not receive its share of the profits.

What was done

The general meeting resolutions were challenged. A mechanism compelling the distribution of profits was implemented through the courts.

06 / Questions
Frequently Asked Questions

Such disputes are handled together with advisers from the relevant jurisdiction.

For an award made outside Russia, an application for its recognition and enforcement is prepared. For an award made in Russia, including by a foreign institution, an application for a writ of execution or for the award to be set aside is prepared or, where the other party has made such an application, objections to it.

A dispute may be referred to arbitration even after it has arisen: the arbitration agreement is concluded in writing, including by an exchange of letters or procedural documents. The documents for related transactions are checked: the clause may be contained in a framework agreement or in a document referred to in the contract.

If there is no such agreement, the dispute is heard by a state court.

An application for a writ of execution is filed with the competent state court or, for a foreign arbitral award, an application for its recognition and enforcement.

The writ of execution issued is presented for compulsory enforcement.

An hourly rate, a fixed fee or a combined model is used; in some cases part of the fee depends on the outcome achieved. The fee is determined by the time actually spent, the complexity of the matter and the overall timeframe of the project, and is agreed before work begins.

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