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Russia: Exclusive jurisdiction of the Russian economic court in case of sanctioned persons

About a year ago, on 8 June 2020 with Federal Law no. 171, two new articles of the Civil Procedure Code (APK) established the exclusive jurisdiction of the Russian economic courts on disputes with the participation of subjects against whom restrictive measures have been introduced by foreign states and / or public bodies of foreign states.

 

According above mentioned amendments, the Russian economic court has exclusive jurisdiction (i) on disputes with the participation of the sanctioned subjects, as well as (ii) on disputes arose from the restrictive measures introduced by a foreign state and / or its public bodies, save for the case when an international agreement of the Russian Federation or an agreement between the parties establishes the jurisdiction of foreign courts, international commercial arbitrations located outside the territory of the Russian Federation.

 

Sanctioned persons will be considered both Russian individuals and legal persons as well as foreign legal persons against whom restrictions have been introduced following the introduction of restrictions against Russian individuals or legal persons.

 

Such persons have the right, inter alia, to request the Russian court to issue a ban on establishing or continuing a dispute in a foreign court, international commercial arbitration, located outside the Russian Federation.

 

The above mentioned provisions also apply in case the arbitration clause agreed between the parties provides for the jurisdiction of a foreign court or an international commercial arbitration located abroad but cannot be enforced due to the restrictions that thereby prevent access to justice for the sanctioned party.

 

However, the new provisions do not prevent the recognition and enforcement of a foreign judgment or an arbitration award issued on the application of the sanctioned person or in the event that the sanctioned person has not challenged the examination of the dispute by the foreign court or international commercial arbitration, located outside the Russian Federation.

 

Rome, 21 May, 2021 

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