While many international companies and investors have a strong interest in the Russian market, they also know that disputes sometimes arise in the course of doing business. As an alternative to litigation in the state arbitrazh courts, international businesses and investors may be able to refer their business disputes to a private arbitration tribunal. This is often an excellent option for foreign businesses in Russia because arbitration is:
- Cost-effective. In many cases, arbitration—even international commercial arbitration—is less expensive than going through the court system with a business dispute. Although there are some cases where arbitration may be the more expensive option, it is certainly worth talking over the risks and benefits with an experienced corporate attorney before deciding how to proceed.
- Private. Arbitration proceedings are not open to the public and often have their own rules for privacy, so it is much easier for international businesses and investors to maintain confidentiality. This can help protect vulnerable trade secrets or sensitive information—and confidentiality agreements may even be negotiated and included in the proceedings.
- Streamlined. Arbitration often requires fewer hearings and less paperwork, and the process is much more streamlined than in business litigation. This can mean that disputes can often be resolved more quickly through arbitration than through the court system.
- Flexible. Arbitration often gives international businesses greater flexibility and more options for resolving a dispute. This can help reduce the time and costs involved, as well as allow room for innovative provisions that serve to mitigate later challenges.
If your company needs legal guidance, consider speaking with our knowledgeable corporate attorneys about the potential benefits of resolving your commercial conflicts in Russia through arbitration.
When Is Arbitration an Appropriate Option for International Companies?
Arbitration proceedings are an option for resolving a wide range of issues that come up for foreign businesses and investors in Russia, and they offer an attractive alternative to the difficulties of litigation. However, it is important to note that not every commercial dispute can be settled through arbitration. There are still some issues that still must be handled in the arbitrazh courts, such as:
- Tax, customs and other administrative disputes
- Disputes over titles and proprietary rights to real estate in Russia
- Disputes that arise from bankruptcy proceedings
- Other disputes that fall under the jurisdiction of the Russian arbitrazh courts
If you are unsure if a conflict you are facing is better handled through arbitration or litigation, don’t hesitate to contact our Russian corporate attorneys with your questions. We have extensive experience in the International Commercial Arbitration Court and the Maritime Arbitration Commission of the Chamber of Commerce and Industry of Russia, as well as other ad hoc and institutional arbitration tribunals located both within and outside the Russian Federation. We understand that businesses and investors sometimes need unique solutions to the challenges they face, and we are prepared to help you make informed decisions about your investment.
What Rules Apply to Russian Business Disputes?
The principal rules of international arbitration in Russia are governed by the Federal Law on International Commercial Arbitration, which are identical to the provisions of the Model UNCITRAL Law. However, the provisions of various international treaties also apply in Russia, including the New York Convention and the European Convention on International Commercial Arbitration. All of the laws, regulations, requirements and options involved make it necessary for large and medium businesses to carefully consider legal counsel in these matters.
Additionally, foreign businesses in the Russian Federation may need to take steps to ensure the enforcement of international arbitration decisions. Appropriate planning with an experienced arbitration attorney protects companies by making sure that all the legal requirements are met and potential problems are minimized.
Our Russian Law Firm Focuses on Successfully Guiding International Businesses Through Alternative Dispute Resolution
Arbitration is the primary focus of our law practice in Russia, and we take pride in finding solutions that are the “right fit” for our clients. Our attorneys have mastered the subtleties and intricacies of procedure in commercial arbitration tribunals of all kinds. The law firm of Jus Privatum provides full-service representation for international business clients, including:
- Formation of the arbitration tribunal
- Representation in arbitration proceedings
- Receipt of favorable holdings
- Enforcement of arbitral awards in Russia
Our law firm represents clients not only in Russia, but also at commercial arbitration institutions in Kiev, Stockholm, Paris, London, and other cities around the world. We are also skilled in representing international companies in litigation if alternative dispute resolution is unsuccessful.
Effectively handling commercial disputes and mitigating potential problems means consulting with a legal representative who is both deeply familiar with local laws and prepared for international concerns. Simply call Jus Privatum today at one of our three international office locations for immediate assistance, or take a moment to complete the contact form on this page for a prompt response from our experienced corporate attorneys.