RUSSIA 7. Dispute resolution
7.1 How efficient are local courts’ enforcement and dispute resolution proceedings, and are there any procedural idiosyncrasies foreign investors must be aware of? Russian courts are relatively effective in dispute resolutions and enforcement. Russia is ranked 10th out of 189 countries by the World Bank’s rating for contract enforcement. The average time required for the resolution of a commercial dispute and enforcement of a judgment is about 270 days, and it takes approximately 36 procedures.
7.2 Do the courts of the FDI jurisdiction respect foreign judgments and are arbitration awards enforceable in the jurisdiction? According to Russian procedural legislation, foreign judgments must be recognised and enforced by Russian courts if it is provided by international treaties of Russia or by law. In practice, it is difficult to procure recognition and enforcement of foreign judgments in the absence of a respective
Jeff Browne International counsel, Chadbourne & Parke
Moscow, Russia T: +7 495 974 2424 E:
JBrowne@chadbourne.com W:
www.chadbourne.com
international treaty. As for arbitration awards, since Russia is a party to Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958), awards must be recognised and enforced. However, Russian legislation provides for certain grounds for refusal in such recognition and enforcement (for example, the contradiction of enforcement of an award to the Russian public policy).
7.3 Are judgments and arbitration awards from the FDI jurisdiction generally enforceable in other jurisdictions? The enforceability of Russian judgments and arbitration awards in other jurisdictions depends on the existence of relevant international treaties between Russian and the other jurisdiction, rules of respective local laws, and other factors, such as reasons for mutuality in recognition and enforcement of judgments and arbitration awards. For example, a Russian judgment was recognised and enforced earlier this year in Germany against a German company, even in the absence of a relevant international treaty between the two countries.
About the author Jeff Browne, counsel at Chadbourne & Parke, has a great depth of experience acting for lenders, borrowers and arrangers on all forms of finance, including commodity finance, real estate finance, acquisition finance, syndicated loans, debt restructuring and derivatives. He also advises on cross-border mergers, acquisitions and joint ventures in Russia, Ukraine and the wider Commonwealth of Independent States. His sector experience includes energy and natural resources, financial services, media, technology and telecommunications, consumer products and retail.
Alexey Kokorin Associate, Chadbourne & Parke
Moscow, Russia T: +7 495 974 2424 E:
akokorin@chadbourne.com W:
www.chadbourne.com
About the author Alexey Kokorin is an associate at Chadbourne & Parke. He specialises in mergers and acquisitions, joint ventures, corporate governance and the regulation of foreign investments, and has been assisting clients in oil and gas, mining and minerals, air transportation, telecommunications, food producing and retail sectors.
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