Russia’s Legal System: Better Than Its Reputation

By Ekaterina Kabanova, KBK Accounting

The legal system of Russia belongs to the civil law system. Case law is not binding, except for decrees of the high courts. The civil procedure is governed by two procedural laws – the Civil Procedural Code (CPC) and the Arbitrazh Procedural Code (APC) for commercial disputes between companies.

Enforcement proceedings are regulated by a separate law: The Law on Enforcement Proceedings. On 01 October 2019, important structural amendments to the CPC came into force, which changed the structure of the courts of the general jurisdiction. Also, since October 2019, so-called “class action lawsuits” were introduced in Russia, in particular to strengthen the protection of rights of consumers in product liability cases and citizens in damage claim cases regarding, for instance, public transportation and environmental matters. Another important practical fact is that the court procedures in Russia are digitalised, which means that the procedures can be followed online and applications, etc., be filed online.

Jurisdiction clauses between parties are generally allowed under Russia law, unless Russian law provides for exclusive jurisdiction of Russian courts, e.g., for disputes arising from immovable property in Russia or bankruptcy cases of Russian legal entities and corporate disputes regarding Russian legal entities, except cases where there is an arbitration clause in favour of an arbitration institution which has registered procedural rules on corporate disputes in Russia.

Also, foreign judgements can be recognised and enforced in Russia, if the application for such recognition is approved by the court of first instance in Russia. However, foreign judgements are generally only recognised if this is provided for by a bilateral or multilateral international treaty or based on the principle of reciprocity. The majority of foreign judgements are not recognised in Russia. Russia is a member state of the New York Convention on the Recognition and Enforcement of Arbitral Awards of 1958. The major Russian arbitration institution is the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation (ICAC).

Ekaterina Kabanova

GGI member firm
KBK Accounting
Auditing & Accounting, Tax
Moscow, Russia
T: +7 495 662 33 30
E: ekaterina.kabanova
W: www.kbk-accounting.de

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.

Ekaterina Kabanova is Head of the corporate department and has over 10 years’ experience in providing legal advice in company restructuring and employment matters.

Published: Litigation & Dispute Resolution Newsletter, No. 12, Spring 2020 l Photo: dimbar76 - stock.adobe.com