A. LEGISLATION, TRENDS AND TENDENCIES
A.1 Proposed Reforms
The Government is currently developing a number of reforms to
Russian arbitration legislation. The proposals include
(i) introducing a registration system for permanent arbitration
courts, to be approved by a special commission under the
Ministry of Justice; (ii) allowing permanent arbitration courts to
be established only by non-commercial organizations, e.g.,
chambers of commerce or business associations; and
(iii) introducing civil liability for arbitration courts that fail to
properly administer the dispute.
A.2 Review of Public Policy Exception
In April 2013, the Supreme Arbitrazh Court of the Russian
Federation gave specific instructions to courts on the application
of the public policy exception as grounds for refusal to recognize
and enforce foreign court decisions and arbitral awards.3 The
Supreme Arbitrazh Court defines public policy as “fundamental
legal foundations (principles) of supreme mandatory nature,
universality, special social and public significance that serve as
basis for building the economic, political and legal system of the
state”. A breach of public policy would, for example, include the
performance of an act that is expressly banned by laws stipulated
in Article 1192 of the Civil Code of the Russian Federation and
damages the sovereignty and security of the state, infringes the
interests of major social groups, or violates the constitutional
rights and freedoms of private individuals.4