Support of disputes in international commercial arbitration

Typical categories of disputes considered by the ICAC

The ICAC at the RF CCI considers a wide range of disputes arising from foreign economic and other international commercial transactions. According to the Rules and practice, the court's jurisdiction includes cases related to the violation of the terms of cross-border agreements in which at least one of the parties is a foreign person or a Russian entity with foreign participation.

The most common categories of disputes referred to the ICAC include:

• International Sale and Delivery of Goods Contracts— the most typical subject of arbitration, including claims regarding quality, timing, volume of deliveries, terms of payment and currency settlements.

• Provision of services and performance of works— disputes related to contracting, engineering, design, construction, marketing and consulting services, including within the framework of international contracts.

• Cargo transportation— disagreements concerning the fulfillment of transport obligations, the liability of carriers and forwarders.

• Rent, leasing, financial lease— disputes arising under contracts for the international rental of property and equipment.

• Licensing agreements and technology transfer- matters related to the terms of use of intellectual property, compliance with licensing restrictions, royalty and reporting issues.

• Financial and credit transactions— disputes over international letters of credit, bank guarantees, loans and investment obligations.

• Insurance of foreign economic risks— disputes related to the occurrence of an insured event during international deliveries and transportation.

In addition, the ICAC may consider disputes involving foreign investors, joint ventures, as well as in the implementation of international projects, including in the field of construction, scientific and technical exchange and international franchising.

Stages of arbitration proceedings in the ICAC

The procedure for considering a dispute in the ICAC at the RF CCI is regulated by a special document - the ICAC Rules, approved by the Presidium of the RF CCI. This process differs from state legal proceedings in its increased flexibility and is adapted to the needs of the parties involved in international business.

The proceedings are conditionally divided into several key stages.

1. Submit request

The procedure begins with the filing of a statement of claim with the ICAC, drawn up in accordance with the requirements of the Rules. The statement must indicate:

• information about the parties;

• a statement of the claims and the circumstances on which they are based;

• references to the contract and arbitration clause (agreement);

• justification of the international nature of the dispute;

• list of attached evidence.

The claim must be accompanied by copies of documents confirming the plaintiff's position, as well as confirmation of payment of the arbitration fee. The amount of the fee depends on the value of the claim and is calculated according to the established scale.

Documents are submitted in electronic and/or paper form in Russian or another language specified by the agreement of the parties.

2. Formation of the panel of arbitrators

After the claim is accepted, an arbitration panel is formed. As a rule, the case is considered by a panel of three arbitrators, but the parties may agree on a different number. Each party has the right to appoint one arbitrator, and the third (the chairman) is appointed by the Presidium of the ICAC.

In some cases, a dispute may be considered by a sole arbitrator if the parties have expressly provided for this in the contract or have given their consent after filing the claim.

The panel of arbitrators is formed from the List of Arbitrators of the ICAC, which includes specialists with international experience, legal education and business reputation.

3. Hearing of the case

The main stage of the procedure includes:

• written exchange of positions: claim, response, rejoinder, explanations;

• presentation of evidence: contracts, correspondence, accounting documents, expert opinions;

• holding hearings— in-person or remote (including using video conferencing);

• interviewing witnesses and experts, if the parties deem it necessary.

The process is based on the principles of equality of the parties, competitiveness and time saving. As a rule, hearings are held without excessive formalism, and the procedure is adapted to the specifics of a particular dispute.

4. Making a decision

Upon completion of the consideration of the case, the arbitration tribunal shall issue an arbitration award which:

• contains the motivation, conclusions and instructions for implementation;

• is final and binding on the parties;

• can be enforced both in Russia and abroad (by virtue of the New York Convention of 1958).

The time frame for consideration of cases depends on the complexity, volume of evidence and the agreed procedural model, but in most cases arbitration is completed within 6-9 months.

Enforcement of the ICAC decision

The decision rendered by the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation is binding on the parties and is subject to execution in accordance with international and national standards.

Enforcement of the decision on the territory of the Russian Federation

On the territory of Russia, the execution of decisions of the International Commercial Arbitration Court is carried out in the manner established by the Arbitration Procedure Code of the Russian Federation. In particular:

• The party in whose favor the decision has been made has the right to apply to the arbitration court with a request for the issuance of a writ of execution.

• The writ of execution is presented to the bailiff service or bank to collect the money.

• Arbitration courts, as a rule, do not review the case on the merits, but only check compliance with procedural formalities and the admissibility of arbitration proceedings in a particular dispute.

Enforcement of the decision outside the Russian Federation

International recognition of the decisions of the ICAC at the RF CCI is ensured, among other things, through Russia’s participation in the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958.

ICAC decisions are recognized and enforced in more than 170 countries that have ratified this convention.

To enforce the award abroad, the party must apply to the competent court of the relevant state with an application for recognition and enforcement of the award (exequatur), enclosing:

• the original decision or its proper copy;

• evidence of the conclusion of an arbitration agreement;

• translation of documents into the language of the relevant court (if required).

Refusal of recognition is possible only on exceptional grounds, such as the absence of an arbitration clause, violation of procedure or public policy of the country of execution. In practice, such refusals are rare.

Peculiarities of dispute resolution in the ICAC

Proceedings in the ICAC at the RF CCI have a number of features that distinguish it from the consideration of disputes in state courts and emphasize its effectiveness for parties to foreign trade contracts.

1. Arbitration is possible only if there is an arbitration clause or a separate agreement to refer the dispute to arbitration.

The key condition for consideration of a dispute in the ICAC is the presence of an arbitration agreement between the parties. It can be drawn up as a separate document or as a condition in the main contract. Without it, arbitration is impossible, even if the dispute is of an international nature.

2. Confidentiality of the arbitration process

Unlike open court proceedings, the ICAC procedures are conducted in acomplete confidentialityInformation about the subject of the dispute, the positions of the parties, documents and the decision shall not be disclosed without the consent of the parties.

3. Professionalism of referees

The ICAC forms a list of arbitrators from among lawyers and practitioners with recognized experience in the field of international private and commercial law. The parties have the right to choose arbitrators who are most competent in a particular field, which ensures high quality legal analysis and validity of decisions.

4. Flexibility of the procedure

Arbitration proceedings in the ICAC are structured taking into account the specifics of each dispute. The parties may agree:

• language of arbitration;

• place of hearing;

• form of presentation of evidence;

• volume of written explanations.

5. Possibility of remote participation

Participation in the proceedings is permitted without the need to travel to Russia.

6. Transparent and predictable regulation

The procedure is strictly regulated and controlled by the norms of Russian legislation and international obligations of the Russian Federation. This excludes arbitrariness and ensures legal certainty in resolving the dispute.

7. Compared to state courts, there are few hearings, but they are long.

Hourly arbitration disputes are extremely rare, but in the ICAC they can last for many hours. However, the number of hearings on the case is smaller, which is, of course, good, but see paragraph 8.

8. It takes a long time to write solutions

Writing an arbitration award is a painstaking task that requires many hours of work, which sometimes translates into months of waiting for the final decision. This has both advantages and disadvantages.

9. The high cost of arbitration and the prevalence of settlement agreements

Better quality = more expensive. The process is paid for entirely out of the pockets of the parties and is quite expensive, so it is not in the interests of the party with a weak position to hold on to the reed for a long time, thereby only increasing the amount of the final payment.

Documents required for filing and conducting a case in the ICAC

Below is a summary list of documents that are typically required at different stages of arbitration proceedings: