Major changes to the domestic and international arbitration in Russia will come in effect on September 1, 2016. The changes were introduced by Federal Law No. 382-FZ “On Arbitration in the Russian Federation,” and Federal Law No. 409-FZ “On Amending Certain Legislative Acts of the Russian Federation and Considering Paragraph 3 Part 1 Article 6 of the Federal Law ‘On Self-Regulating Organizations’ as Having Lost Its Force Due to the Adoption of the Federal Law ‘On Arbitration in the Russian Federation’”.
The arbitration reform extends this list of disputes subject to jurisdiction of international commercial arbitration to include disputes where a substantial part of the obligations arising from the relationships between the parties is to be performed abroad, or where the subject matter of the dispute is most closely connected with a foreign state. It also extends the scope of disputes pertaining to international investment, which may be made subject to the international commercial arbitration.
The reform implements new rules for administration of arbitration process. Permanent arbitration institutions may only be created under the auspices of non-commercial organizations and are required to obtain a license from the Russian Government. A number of restrictions placed on Ad hoc arbitrations, including limitation on jurisdiction of ad hoc panels to hear corporate disputes and inability to gain assistance from the Russian courts in collecting evidence.
The new law aims to resolve unclarities as to which corporate disputes can be subject to arbitration. It also provides that arbitration agreements can be part of the Russian company’s charter binding on all shareholders.
Some provisions of the laws will be taking effect after September 1, 2016.
For more information please contact Maria Grechishkina (email@example.com) at (215) 569-8901.