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“Monopolization of the arbitration courts market” — Tatiana Tereshchenko for the Legal Information Agency

Commercial arbitration is not in demand by Russian business. The reform completed four years ago led to the monopolization of the arbitration courts market. Whereas the arbitration institutions themselves are convinced of the effectiveness of non-state Themis.

The current legislation allows to transfer to the arbitration court (arbitration) almost any economic dispute. Formally, the decision made by him is final and not subject to appeal, but often requires actual confirmation by a state court.

Tatiana Tereshchenko, Head of the analytical direction of Prime Advice:

The availability of arbitration proceedings is primarily related not to the number of permanent arbitration institutions (PAIs), but to the awareness of the disputing parties about the availability of the most alternative dispute resolution procedure. As well as an adequate understanding that tariffs (rates of fees) in commercial arbitration are expected to exceed the amount of state duties. However, arbitration proceedings are initially designed for a more "thoughtful" attitude to the dispute of its participants, and arbitrators, as a rule, are recognized professionals in their field.

In general, the establishment of arbitration fee rates by the PAIs is not something restrictively monopolistic. In addition, no Russian arbitration is as expensive as, for example, the London Commercial Arbitration Court (LCIA).

The active use of arbitration is hindered, among other things, by the lack of a clear understanding of arbitration. At the same time, the risks associated with the difficulties of recognizing and bringing an arbitration award into force are also clear. But, I believe, they are not the main reason for distrust of commercial arbitration. In addition, the analysis of practice shows the dynamics of the pro-judicial approach of state courts in recent years.

If the parties are interested in resolving the dispute in arbitration, they independently propose candidates for arbitrators, coordinate them, and so on. The participation of the PAIs in the formation of the arbitration tribunal is required only when the parties to the dispute are passive or a conflict has arisen between them. As an ad hoc arbitrator, the parties can elect a citizen who does not even have a higher education – the requirements of the law in this matter are quite liberal. At the collegial consideration of a dispute, at least one of the judges must have a domestic or foreign law degree.

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