Execution of Foreign Court Decisions in Russia
By Natalia Pynnikova, KBK Accounting
Procedures for recognition of foreign court decisions and the possibility of such recognition and execution depend entirely on who made the decision: an arbitration court or a state court.
Recognition of Foreign Arbitral Awards
The UN Convention “On the Recognition and Enforcement of Foreign Arbitral Awards” (New York, 1958), ratified by 159 countries, is a legal act governing such procedures. It applies solely to the recognition of foreign commercial arbitrators’ decisions, i.e. such decisions are recognised by application to the arbitration court for recognition of such decisions and for writ of execution.
Unfortunately, legal practice of recognition of foreign arbitral awards suggests that, so far, courts do not always correctly address the scope of the Convention. Yet, statistics show that, for instance, 95% of applications for recognition of foreign decisions were satisfied in 2016, and 95% in 2017. Infringement of public policy and improper notification of the parties were the main reasons for refusal.
Recognition of Foreign State Court Decisions
Foreign state court decisions are recognised and enforced by courts of the Russian Federation only when recognition and enforcement of such decisions is stipulated in the international treaty of the Russian Federation. Exequatur requirements of the Arbitration Procedural Court of the Russian Federation apply to all foreign court decisions.
The issue of recognition of court decisions in Russia is optimally resolved with CIS states. Meanwhile, bilateral agreements with other countries are not uncommon.
Recently, there was a notable increase in the enforcement of foreign decisions in the legal practice with reference to principles of reciprocity and international comity, even without bilateral agreements, and sometimes with reference to the New York Convention where its application is impossible. However, the percentage of recognition of decisions without bilateral agreements tends to be nil.
Natalia PynnikovaGGI member firm
Auditing & Accounting, Tax
T: +7 495 662 33 30
KBK Accounting is a reputable outsourcing firm and provider of a wide range of services, including tax accounting and bookkeeping, tax advisory, reporting and compliance, HR, and interim management. Natalia Pynnikova is responsible for court proceedings in the firm and is a member of the Russian Bar Association.
Natalia has more than 19 years’ general legal experience. She specialises in litigation, as well as in pre-trial settlement of cases, and also has extensive experience in bankruptcy affairs and subsidiary liability. She has experience in litigation not only with Russian, but also German, material law.
Published: Litigation & Dispute Resolution Newsletter, No. 11, Autumn 2019 l Photo: Pavel Losevsky - stock.adobe.com