Russian Arbitration Law

Sources of Russian Arbitration Law

Russian arbitration law is governed by a complex framework of legislative sources. The Law on International Commercial Arbitration of 1993 (No 5338-1) is based on the UNCITRAL Model Law and governs international commercial arbitration seated in Russia. The Code of Civil Procedure (Grazhdansky Protsessualny Kodeks) and the Code of Arbitrazh Procedure (Arbitrazhny Protsessualny Kodeks) address domestic arbitration and the interaction between state courts and arbitral tribunals. The Law on Arbitration in the Russian Federation of 2015 (No 382-FZ) comprehensively reformed domestic arbitration, introducing stricter institutional requirements and limiting the availability of ad hoc arbitration. The Resolution of the Plenum of the Supreme Court No 53 of 2019 provided important clarifications on the enforcement of foreign arbitral awards, consolidating judicial practice and ensuring greater predictability in the recognition and enforcement of international awards in Russia.

International Commercial Arbitration

International commercial arbitration in Russia follows the UNCITRAL Model Law framework. The 1993 Law defines commercial disputes broadly, covering disputes arising from contractual and other civil law relationships in the field of international trade. The parties are free to choose the seat of arbitration, and the arbitration agreement must satisfy the form requirements of the Model Law. The doctrine of competence-competence is recognised, allowing the arbitral tribunal to rule on its own jurisdiction. The appointment and challenge of arbitrators follow the Model Law’s provisions, ensuring procedural fairness and respect for the parties’ autonomy. The tribunal may order interim measures, and the state courts retain a supporting function in the taking of evidence and the enforcement of interim measures ordered by the tribunal.

Domestic Arbitration and the 2015 Reform

The 2015 reform of domestic arbitration represented a significant tightening of the regulatory framework. The Law on Arbitration in the Russian Federation requires domestic arbitration to be administered by a permanent arbitration institution accredited by the Ministry of Justice. The list of approved institutions is limited and includes the International Commercial Arbitration Court (ICAC) at the Chamber of Commerce and Industry of the Russian Federation, the Maritime Arbitration Commission (MAC), and arbitration centres affiliated with the Russian Union of Industrialists and Entrepreneurs. The reform effectively prohibited ad hoc arbitration for domestic disputes, requiring all domestic arbitration to be institutional. The requirement of accreditation subjects arbitral institutions to ongoing regulatory oversight, including review of their rules, fee structures, and arbitrator appointment procedures. The reform aimed to raise the quality and legitimacy of domestic arbitration while asserting greater state control over the arbitral process.

Recognition and Enforcement of Foreign Awards

Russia is a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which it ratified in 1960. The recognition and enforcement of foreign awards is governed by the Convention as interpreted by Russian courts, with the 2019 Supreme Court Resolution providing authoritative guidance. The grounds for refusal under Article V of the Convention are interpreted consistently with international practice, though the public policy reservation (ogovorka o publichnom poryadke) has been applied in some cases to refuse enforcement where the award conflicts with fundamental principles of the Russian legal order. Part Two of the Law on International Commercial Arbitration 1993 provides for the recognition and enforcement of foreign awards in Russia.

Exclusions and the Impact of Sanctions

Russian law excludes certain categories of disputes from arbitration, granting exclusive jurisdiction to state courts for disputes involving real property located in Russia, public law matters, insolvency and bankruptcy proceedings, and disputes affecting the rights and legitimate interests of third parties not bound by the arbitration agreement. The impact of international sanctions on arbitration involving Russian parties has been significant. Western sanctions restricting the provision of legal and arbitration services to certain Russian entities and individuals have led to complications in the appointment of arbitrators, the funding of proceedings, and the enforcement of awards. Russian counter-sanctions have included legislation allowing Russian parties to seek the transfer of jurisdiction from foreign-seated arbitration to Russian state courts in certain circumstances, raising questions about the compatibility of such measures with the New York Convention and the principles of international commercial arbitration.