Russian government introduces new Bill on arbitration

The government of the Russian Federation has introduced a Bill on arbitration into the Russian Parliament.

Maxim Kulkov (Managing Partner) and Elena Zaltser (Associate), KK&P

On 6 May 2015, the government of the Russian Federation introduced a Bill “On Arbitration” and “On the amendments to certain legislative acts” (Arbitration Bill) into the Russian Parliament.

While the Arbitration Bill primarily regulates domestic arbitration, some of the provisions also affect international commercial arbitration. This update only focuses on the changes affecting international commercial arbitration.

The Bill imposes certain requirements on permanent arbitration centres with a seat in Russia. For example, only noncommercial organisations may establish new arbitration centres. Moreover, this can only be done with the permission of the Russian government. The International Commercial Arbitration Court (ICAC) and Maritime Arbitration Commission (MAC) under the Russian Federation Chambers of Commerce are exempt from this obligation.

Furthermore, under the Bill arbitration centres will have to preserve arbitration awards and case materials for five years, unless the relevant rules of arbitration that apply in any given case provide for a longer term.

The Bill provides that arbitration centres will have civil liability, although arbitrators are immune except for civil liability in criminal cases. However, the rules of arbitration may provide for reduction of the arbitrators’ fees where the arbitrator has failed to perform his duties.

If the Bill becomes law, it will come into force on 1 September 2015.

This article has previously been published by Practical Law Arbitration on 19 May 2015.