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Review of Russian court practice 2024 (II)_en.pdf
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The Review for the first half of 2024 is here.
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P.S. From time to time, and over the decades, Russian courts have applied the 1958 New York Convention to decisions of foreign courts. While it is an incorrect approach, that is the current situation. You can find my publications, which address incorrect case-law practices, in both Russian and English.
For the English version, see the Kluwer Arbitration Blog; for the Russian version, see my Telegram.
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First, the applicant’s beneficiary is the subject of an international criminal arrest warrant. Therefore, in the court’s view, a judgment in favor of the company and its enforcement would result in the beneficiary’s enrichment, which would be contrary to public policy.
Second, the debtor accused the applicant of engaging in fraudulent transactions. According to the court, the applicant’s beneficiary should have appeared before the Russian court to testify regarding the circumstances of these transactions. #Cyprus
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20250512_Opredelenie.pdf
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In Case No. А40-118242/2024, a Russian court refused to recognize and enforce an ICC arbitral award (decision dated February 7, 2025). A cassation court upheld this decision on May 12, 2025. The courts held that enforcement would contradict a Russian presidential counter-sanction decree and would violate public policy.
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In parallel, the courts rejected the debtor's argument that the arbitral proceedings violated the principles of impartiality and objectivity on the grounds that the arbitrators were from "unfriendly" countries (Bulgaria
The courts noted that the arbitral panel was composed of arbitrators from countries that were, and still are, considered "unfriendly" to both parties involved in the ICSID Additional Facility proceedings. Therefore, it can be inferred that the courts considered the parties to have been on equal footing.
- First-instance court ruling dated November 5, 2024.
- Appeal court decision dated February 5, 2025.
- Cassation court decision dated April 29, 2025.
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🇷🇺 A Russian court has ruled that Russian counter-sanctions do not exempt a party from fulfilling its contractual obligations nor prevent the recognition and enforcement of foreign arbitral awards within Russia. An arbitral creditor (a foreign company) sought…
Update: On May 27, 2025, a cassation court overturned the lower court’s decision and remanded the case for reconsideration. The court emphasized that, during the new proceedings, Russian counter-sanctions measures must be taken into account (Case No. А56-28968/2024). #Latvia
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Over the decade from 2014 to 2024, Russian state courts (arbitrazh courts) considered a total of 2,395 cases related to the recognition and enforcement of foreign court decisions and foreign arbitral awards. This averages out to approximately 239 cases per year.
Out of these 2,395 cases, applications were granted in 1,519 instances, meaning that a foreign court decision or foreign arbitral award was recognized and enforced in Russia. This corresponds to an average of 151 cases per year.
The average rate of successful applications is 63%.
Note:
1. Separate data on the enforcement and recognition of foreign court decisions and foreign arbitral awards is not available publicly.
2. The figures do not include cases considered by courts of general jurisdiction or bankruptcy cases where recognition of foreign court decisions or arbitral awards might also arise.
For the text in Russian, click here.
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Russia’s Constitutional Court refused to hear a complaint over a law allowing courts to assert exclusive jurisdiction over disputes involving sanctioned Russian parties.
My blog post on Constitutional Court Ruling No. 999-O of April 29, 2025, is here: https://smnlaw.ru/constitutional-court-refused
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My blog post on Constitutional Court Ruling No. 999-O of April 29, 2025, is here: https://smnlaw.ru/constitutional-court-refused
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In the Sibur case, the Russian Supreme Court reaffirmed that if unilateral sanctions were (or are) the cause of a dispute—for example, if a contract was not performed due to the imposition of restrictive measures—then Russian arbitrazh courts (state courts) courts have exclusive jurisdiction over the matter, regardless of any arbitration clause. The dispute in that case involved bonds and included an LCIA arbitration clause (Russian Supreme Court decision dated May 30, 2025, in Case No. А40-116513/2024).
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A Russian court has refused to grant injunctions on freezing assets in support of arbitration seated in Moscow.
A claimant sought to freeze funds, stating that it had commenced arbitration proceedings. It requested the court to issue injunctions, alleging that the defendant was dissipating assets.
In its ex parte ruling dated June 10, 2025, the court found that the claimant's application did not meet the requirements for the granting of an injunction, as the claimant had failed to demonstrate a real risk of dissipation of assets by the defendant (Case No А40-140011/2025).
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A claimant sought to freeze funds, stating that it had commenced arbitration proceedings. It requested the court to issue injunctions, alleging that the defendant was dissipating assets.
In its ex parte ruling dated June 10, 2025, the court found that the claimant's application did not meet the requirements for the granting of an injunction, as the claimant had failed to demonstrate a real risk of dissipation of assets by the defendant (Case No А40-140011/2025).
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