Recognition and Enforcement of Awards by Foreign Courts and Foreign Arbitrations in Russia

The process of recognition and enforcement of awards by foreign courts and arbitrations is carefully regulated by Russian procedural law.

The possibility of recognition and enforcement of awards by foreign courts/arbitrations in Russia is ensured by the principles of reciprocity and international comity, which basically means that the awards of foreign courts/ arbitrations are recognized and enforced, if the native states of these courts/ arbitrations also recognize and enforce the awards of Russian courts.

 

Required Conditions

  • The court/arbitration procedure outside of Russia has been completed in favour of the client, and the client has received the final award of the foreign court/arbitration.
  • The award of the foreign court/arbitration has been made within 3 years from the date of the client’s application to the Russian court with a request to recognize this award. The Russian court may restore the elapsed term if evidence of a legitimate excuse has been presented.
  • The client possesses documented proof that his opponent had been notified in a timely and properly manner of the court proceedings outside of Russia, where the client won his case against him.
  • The rules of exclusive jurisdiction are met during the litigation.
  • There are no causes to refuse recognition and enforcement of the foreign award in Russia.

 

How Does It Work?

 

Step 1: The client presents to MGAP the final foreign award that he wishes to be recognized and enforced in Russia.

Step 2: MGAP carries out an evaluation of the judicial possibilities and submits this in the form of a report for the client.

Step 3: If no causes exist to refuse recognition and enforcement of an award by a foreign court/arbitration and the client wishes to initiate the procedure of recognition in Russia, MGAP provides full legal support in the preparation of the required documents, including:

  • Drafting of the legal opinion for recognition that contains examples of recognition and enforcement of Russian court awards in the state of origin of the foreign court/arbitration, analysis of the procedural legislation of the respective state regarding the recognition and enforcement of Russian court awards on the territory of such state;
  • Legal support to the client in the process of collecting and legalizing other documents, proving the absence of causes to refuse recognition and enforcement of an award by a foreign court/arbitration.

Step 4: The claim of recognition of the award by the foreign court/arbitration is filed by MGAP with the corresponding Russian court.

Step 5: If necessary, MGAP provides support in obtaining and executing the enforcement order.

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Recognition of Awards without Enforcement Required

 

In some cases, the award of a foreign court/ arbitration may be prejudicial to a separate dispute between the same parties, taking place in a Russian court (eg the award of a foreign court/ arbitration regarding the recognition of a transaction as void), meaning that this award does not require any actions of enforcement; we would still recommend filing a claim of recognition of a foreign award with a court of Russia.

However, from September 1st 2016 new amendments will come into force, according to which foreign court/ arbitration awards which do not require coercive enforcement must be acknowledged by Russian arbitration courts without any further procedures, if the opposite party provides no objections towards this.

 

Recognition and Enforcement of Russian Courts’ Awards in Foreign States

 

MGAP also provide legal support for their clients in recognition and enforcement of Russian courts’ awards outside of Russia. MGAP has an extensive network of foreign internationally recognised law firms with experience in recognition and enforcement of Russian courts’ awards in their states.

The basis and procedure of recognition and enforcement of Russian courts’ awards outside of Russia are regulated by international treaties of the Russian Federation.

However, in the absence of an international treaty, the rules and procedures of such recognition and enforcement may be determined and set down by the internal legislation of the foreign state. Analysis of international judicial practice shows that foreign courts also often rely on the principles of reciprocity and interna.onal comity. Foreign courts, as well as Russian courts, examine the facts to discover whether:

  • The Russian court’s award is final
  • The opposite party had been properly notified of the court proceedings and rulings
  • The Russian court had jurisdiction to deal with the relevant claim.

 

For further information please contact:

 

Sergei Grachev, Managing Partner          

Amiran Gogiberidze, Partner