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“As a non-relative: what happens to foreign verdicts in Russian courts” — Tatyana Tereshchenko for Delovoy Peterburg

Decisions of foreign courts must be confirmed by Russian ones. In the first half of 2020, 291 out of 398 foreign verdicts were recognized as legitimate. Distrust of the domestic justice system encourages businesses to resolve disputes abroad. However, the transfer of cases to foreign arbitrations increases the time and cost of consideration, and also turns into uncertainty.

Many are invited, but few are chosen

According to experts, the practice of considering internal Russian conflicts without a "foreign element" by international arbitrations remains controversial.

There is no formal ban on submitting disputes to international arbitration located abroad. Exceptions are stipulated in the law – in particular, corporate disputes of domestic companies should be considered only by arbitration located in our country,

– says Tatyana Tereshchenko, head of the analytical department of the Prime Advice Law Firm.

All flags will visit us

It is even more difficult to refer a dispute to a foreign state court.

According to Tatyana Tereshchenko, this issue should take into account not only and not so much the will of the parties, but the rules established by foreign procedural legislation on the jurisdiction of disputes.

As a rule, it is necessary to establish the connection of the dispute with the territory of the competent foreign state court,

– the expert explains. It is much easier to sue a company located abroad — you can either choose a court on the territory of the country where it is located, or trust the Russian Themis.

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