Practical Law updated the article by Maxim Kulkov and Sergey Lysov

Russian Supreme Court prohibits banks undergoing a “rehabilitation” procedure from arbitrating disputes.

The Russian Supreme Court has held that, where a bank is undergoing a “rehabilitation” procedure (a type of bankruptcy procedure employed to avert insolvency), any related proceedings must be brought before a commercial court, and not in arbitration.

In addition, to prove the validity of an agreement to arbitrate, the original agreement must be submitted in evidence. (Deposit Insurance Agency v Bank Trust and Phosint Limited, Case No. A40-117039/2015.)

This article has been published by Practical Law Arbitration on 2 of September, 2016.