Dispute resolution with a Russian counterparty in state courts of Russia

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.