Dispute resolution with a Russian counterparty in state courts of Russia
Foreign companies can file claims against Russian counterparties in arbitration courts in Russia if there is a connection between the dispute and the territory of the Russian Federation. KDpartners lawyers represent the interests of foreign clients at all stages of the process, from preparing and filing the claim to defending it in court and enforcing the decision.
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- Jurisdiction of Disputes Involving Foreign Participation
- Court Proceedings in Russian Arbitration Courts
- Sanction Provisions and Jurisdiction Clauses
- Enforcement of Russian Arbitration Court Decisions
- Legal Support by KDpartners
Jurisdiction of Disputes Involving Foreign Participation
In accordance with Article 247 of the Arbitration Procedural Code of the Russian Federation, Russian arbitration courts consider economic disputes involving foreign legal entities if the dispute has a connection to the territory of Russia. Such a connection may be expressed in the following ways: the place of performance of the contract is located in Russia, the subject of the dispute is property located in Russia, or the defendant is registered in Russia.
If such a connection exists, a foreign company has the right to file a claim against a Russian counterparty in the arbitration court of the relevant constituent entity of the Russian Federation. In the absence of a specific territorial jurisdiction, the case may be heard by the Arbitration Court of the city of Moscow.
The transfer of the dispute to a Russian court is also possible if there is an agreement between the parties on contractual jurisdiction, provided that such an agreement complies with the requirements of Article 249 of the Arbitration Procedural Code of the Russian Federation.
Regardless of the parties’ will, certain categories of disputes are subject to the exclusive jurisdiction of Russian courts. This includes, in particular, disputes related to real estate in Russia, corporate conflicts involving Russian legal entities, and disputes affecting the interests of the Russian Federation as the owner of property.
Court Proceedings in Russian Arbitration Courts
The process is initiated by filing a statement of claim with the arbitration court of the constituent entity of the Russian Federation that has jurisdiction over the case. The claim must be submitted in writing and contain the mandatory information required by Article 125 of the Arbitration Procedural Code of the Russian Federation. Documents drafted in a foreign language must be translated into Russian and notarized.
Proceedings in Russian arbitration courts are conducted in Russian. Foreign companies participate in the process through a representative acting based on a duly executed power of attorney.
The timeframe for considering a case in the first instance is usually up to three months from the date the claim is accepted. If there are motions, expert opinions, or additional evidence, the period may be extended. In case of appeal, the decision becomes final after the appeal or cassation review.
The court considers the case based on the evidence presented, including correspondence, contracts, invoices, acts, witness testimonies, and expert opinions. If the claim is upheld, a decision is issued, which can serve as the basis for issuing an enforcement order.
Sanction Provisions and Jurisdiction Clauses
Since 2020, Articles 248.1 and 248.2 have been added to the Arbitration Procedural Code of the Russian Federation, regulating the consideration of disputes involving foreign parties subject to restrictive measures. These provisions establish the exclusive jurisdiction of Russian courts in cases where one of the parties to the dispute has been sanctioned or access to justice in a foreign jurisdiction is difficult or impossible.
A Russian court has the right to declare an arbitration clause invalid if its application would violate the right to judicial protection. The basis for this is the impossibility of a fair trial in a foreign jurisdiction, a refusal to secure the claim, or other restrictions caused by the sanctions regime.
In addition, a Russian court may issue an order prohibiting the continuation of proceedings in a foreign court — a so-called anti-suit injunction. Ignoring this order may lead to enforcement measures, including compensation claims, asset seizure, or refusal to recognize a foreign decision.
The application of these provisions requires an individual assessment of the circumstances of the case. The court considers not only formal characteristics but also the actual availability of judicial protection outside of Russia.
Enforcement of Russian Arbitration Court Decisions
Decisions of arbitration courts of the Russian Federation are subject to enforcement in accordance with the procedure established by Federal Law No. 229-FZ "On Enforcement Proceedings." The procedure begins with the enforcement order issued by the court after the decision becomes final.
The enforcement order is submitted to the territorial body of the Federal Bailiff Service at the location of the debtor or their property. Foreign companies have the right to initiate enforcement through a representative with a power of attorney. Documents drafted in a foreign language must be translated into Russian and notarized.
If the debtor’s property is located outside of Russia, the decision can be used as the basis for applying to a foreign court, provided there is an international agreement on mutual recognition of judicial acts. However, the enforcement procedure abroad is governed by the law of the relevant foreign country.
If the decision concerns a foreign company — the defendant, located outside of Russia, the court may impose protective measures on its property in Russia, including asset seizure, prohibition of registration actions, and other restrictions aimed at ensuring enforcement.
Legal Support by KDpartners
The specialists at KDpartners provide full legal support to foreign companies in judicial disputes in Russian arbitration courts. We assess the prospects of the case, develop the legal position, prepare the claim, and represent the client’s interests at all stages of the process.
The company’s lawyers analyze the contract, form the evidence base, ensure proper documentation, and interact with judicial authorities. If necessary, we secure protective measures, assist in debt recovery, and monitor the enforcement process.
Support is provided in Russian, English, and Chinese, taking into account the client’s jurisdiction, commercial interests, and cross-border restrictions.
Successful cases
Examples of legal solutions tailored to the specifics of the request, industry and jurisdiction.
Non‑payment under a supply contract for construction materials
Situation
A supplier company faced a refusal by the buyer to pay for the last batch of materials, citing "defects" in the products as the reason.
Solution
Specialists of the company analyzed the terms of the contract, sent a claim, and gathered evidence that the goods had been accepted without any remarks. After negotiations with the management of the counterparty, a reconciliation report and a debt repayment schedule were signed.
Result
Payment was received in full, and court proceedings were avoided.
Construction contract dispute at the ICAC at the RF CCI
Situation
The contractor demanded payment for additional work that had not been agreed upon by the customer.
Solution
Lawyers specializing in arbitration cases prepared the customer’s legal position, submitted an expert technical opinion, and demonstrated that the claimed expenses were not included in the approved estimate.
Result
The arbitration dismissed the contractor’s claim, confirming the validity of the client’s position.
Violation of a distribution agreement (arbitration at HKIAC)
Situation
A Russian company violated the distributor’s exclusive rights by entering into contracts with other partners.
Solution
Specialists in international arbitration gathered evidence of the violation and represented the client’s interests at the Hong Kong International Arbitration Centre (HKIAC).
Result
The arbitration found that the agreement had been violated and awarded compensation for damages. The decision was subsequently recognized and enforced in Russia.
Enforcement of an arbitral award
Situation
After receiving a court decision, the debtor did not perform its obligations and transferred assets to affiliated structures.
Solution
Lawyers specializing in enforcement proceedings secured a freeze on the debtor’s assets and accounts receivable and initiated proceedings to hold the affiliated persons jointly and severally liable.
Result
The court decision was enforced in full, and the claimant received the amount including interest.
Recognition of an international arbitral award in Russia
Situation
A foreign company applied for recognition and enforcement of an ICC arbitration award for the recovery of damages from a Russian partner.
Solution
A team of specialists in private international law prepared an application for recognition of the award, legalised the documents, and proved compliance with the terms of the 1958 New York Convention.
Result
The Russian arbitration court granted the application, and the arbitral award was successfully enforced.
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FAQ
When can a foreign company file a claim in a Russian court?
Can you appeal to a Russian court if the contract specifies foreign jurisdiction?
In which language is the case heard in a Russian court?
Can a foreign company participate remotely in a Russian court case?
How is a Russian court decision enforced?
What documents are needed to file a claim in a Russian court?
Is it possible to reach a settlement in a Russian court?
Is the foreign plaintiff required to be present in a Russian court?
Can a claim be filed in a Russian court if the counterparty does not have an office or property in Russia?
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