“Arbitration Alternative” — Tatiana Tereshchenko for Legal Information Agency
Russian companies have begun turning more frequently to domestic arbitration courts, though their caseload still doesn't exceed 0.2 percent of total disputes. Unlike state courts, commercial justice enjoys international recognition, while the question of state oversight remains unresolved.
Currently, only seven permanent arbitration institutions operate legally in Russia. Their decisions are legally binding and final. However, state courts often block arbitration institutions rulings, sometimes using political pretexts.
Tatiana Tereshchenko, Head of Analytical Practice at Prime Advice Law Offices:
Parties to arbitration proceedings are free to select any arbitrator they deem independent and impartial, including those not listed with specific arbitration institutions. Arbitration institutions administer disputes but cannot influence decisions.
Challenging awards on public policy grounds requires extremely compelling arguments, which state court rulings typically lack. Through expansive interpretation of this concept, courts effectively revise arbitral awards. This approach undermines arbitration's core principles — autonomy, finality, and limited state interference.