Arbitration in Russia Challenges and Opportunities Roman Zykov Secretary General, Russian Arbitration Association Vilnius, November 21-22, 2013
Contents Legal environment Present state of affairs Developments Russian Arbitration Association 2
Legislation The New York Convention 1958 European Convention 1961 Moscow Convention 1972 Optional Arbitration Clause 1977 71 BITs UNCITRAL Model Law 1985 3
Present Uniform application of Law Broader arbitrability Interim measures by state court Optional forum clauses invalid No court s review on merits Improvement in enforcement (3 year limit) 4
Arbitrability Any commercial matter Real Estate - ok Corporate SPA - ok SHA -? Bankruptcy - no Competition - no 5
Russian disputes abroad 6
Russian element in the ICC 7
ICC Russia Survey Russia as Place for Arbitration Please indicate your preferences with regard to the cities listed below if negotiating the place for arbitration Russian respondents foreign respondents Paris (1) Stockholm (2) London (3) Moscow (4) Geneva (5) 3.71 3.70 3.59 3.55 3.30 Paris (1) Vienna (2) London (3) Stockholm (4) Geneva (5) 4.39 4.14 4.14 3.92 3.88 Vienna (6) 3.23 Singapore (6) 3.77 St. Petersburg (7) 2.95 Moscow (7) 3.21 New York (8) 2.54 New York (8) 3.20 Dubai (9) 2.26 Dubai (9) 3.00 Hong Kong (10) 2.08 Hong Kong (10) 2.88 Singapore (11) 1.98 St. Petersburg (11) 2.85 0 1 2 3 4 5 0 1 2 3 4 5
Russian Arbitration Association Founded in 2013 50 founding law firms Non-governmental Non-profit 9
1 A&T Lawyers 2 AKP Consulting 3 Allen & Overy 4 ALRUD 5 Astapov & Partners 6 Baker & McKenzie 7 Bartolius 8 BEITEN BURGHARDT 9 Clifford Chance CIS Ltd 10 Debevoise & Plimpton 11 Dechert Russia 12 Engarde 13 FBK Pravo 14 Freshfields Bruckhaus 15 Hogan Lovells CIS 16 Injurservice 17 IPEG 18 Kachkin & Partners 19 Kalikova Associates 20 Khrenov & partners 21 Knyazev & Partners 22 Koblev & Partners 23 Korelsky, Itschuk, Astafiev and Partners 24 Lidings 25 Makarov Legal Bureau 26 MENA Chambers sprl 27 Monastyrsky, Zyuba and Stepanov & Partners 28 Morgan Lewis International LLC 29 Moris Group 30 MOTIEKA & AUDZEVICIUS 31 Muranov, Chernyakov & Partners 32 Nektorov, Saveliev & Partners 33 Norton Rose Fulbright (Central Europe) LLP 34 Ost Legal 35 Pepelyaev Group 36 Prime Advice 37 Quinn Emanuel Urquhart & Sullivan 38 RBL Law Firm 39 Revera Consulting Group 40 Sabev & Partners 41 Sayenko, Kharenko 42 SG Global Advice L.L.P 43 Squire Sanders 44 Stephenson & Harwood LLP 45 Sysuev, Bondar & Khraputski 46 Vegas-Lex 47 Westside Advisors 48 White & Case 49 Yakovlev & Partners 1050 Yukov & Partners
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Tatiana Slipachuk Vladimir Khvalei Timur Aitkulov Noah Rubins Ilya Nikiforov David Goldberg 12
Alevtina Kamelkova Alexander Khraputsky Vasily Rudomino Yuri Monastyrsky Andrey Loboda Loboda, Filimonov and partners 13
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Tamara E. Abova Alexei Dudko Ekaterina Kobrin Sergey N. Lebedev Galina Zukova Francesca Albert Gleb Sevastianov Treteisky Sud Journal 15
RAA objectives Dispute resolution services in CIS Domestic International Arbitrators database Improvement of legislation Education Knowledge database 16
RAA Dispute Resolution Administering disputes under the UNCITRAL Arbitration rules Acting as appointing authority On-line arbitration for small claims Arbitrator s database 17
Appointing authority The functions of the RAA Appointment of arbitrators on default of party Selection of chairman or sole arbitrator Adjudication of challenges to arbitrators Administrative authority Maintenance and disbursement of advances Review and certification of awards Custody of case documents Prospective administrative activities Further administrative support to tribunal Hearing organization and logistics 18
RAA as appointing authority The Nominating Committee and its functions The arbitrator database and arbitrator qualifications Procedure for procuring appointment of coarbitrator by RAA Procedure for procuring appointment of sole arbitrator or chairman by RAA Arbitrator challenge and replacement 19
RAA as administrative authority Current administrative activities Management of costs and advances Procedure for scrutiny and certification of final awards Prospective administrative activities Custody of the case file Secretarial and other administrative support Organization of hearings 20
Arbitration Costs ($) 313798 238075 221000 170798 132348 124351 146,080 96629 93750 24,480 61094 47492 31500 43,680 64500 59,680 1,000,001 5,000,001 10,000,001 100,000,000 ICAC ICC SCC RAA 21
Arbitrator s fee ($) 214584 196000 181772 113284 87334 90254 81250 68835 7344 39378 31513 24500 13104 52500 17904 46704 1,000,001 5,000,001 10,000,001 100,000,000 ICAC ICC SCC RAA 22
Administrative fee ($) 99376 99215 57515 56303 45015 41776 17136 21715 15979 7000 30576 27794 34097 12000 12500 25000 1,000,001 5,000,001 10,000,001 100,000,000 ICAC ICC SCC RAA 23
Arbitration Costs: breakdown ICAC ICC SCC RAA ICAC ICC SCC RAA ICAC ICC SCC RAA ICAC ICC SCC RAA 1,000,001 5,000,001 10,000,001 100,000,000 Administrative expenses Average arbitrator's fees 24
Thank you! Roman Zykov Secretary General Russian Arbitration Association roman.zykov@arbitrations.ru www.arbitrations.ru 25