Originally from Baker and McKenzie International Arbitration Yearbook 2014-2015

A. LEGISLATION, TRENDS AND TENDENCIES

A.1 Legislation

International arbitration in Russia continues to be governed by the 1993 Law “On International Commercial Arbitration” (“the 1993 Law”),3 to which no legislative amendments were made in 2014.

A.2 Trends and Tendencies

As we reported last year,4 draft amendments to Russian arbitration laws were introduced in January 2014 and discussed at length during the months that followed. At the end of July 2014, the draft laws were vetoed by the President’s administration, which found that they overregulated the activities of arbitration courts. A new draft is expected at the beginning of 2015.

B. CASES

B.1 Public Procurement Contract Disputes Are Not Arbitrable

In Production-Technical Association for Capital Repairs and Development under the Health Department of Moscow v. ArbatStroy LLC,5 a dispute arose out of a contract entered into upon the results of an open electronic auction in accordance with Russian Public Procurement Law. The contract contained an arbitration clause referring any disputes out of or in connection with it to the Peresvet Arbitration Court.6 This arbitration clause was included in the contract by the customer when placing the order.

The Supreme Arbitrazh Court reversed the lower courts’ decisions and refused to issue the writ of execution of the award granted by the Peresvet Arbitration Court in favor of the customer. The Court found that disputes arising out of public procurement contracts are nonarbitrable, and therefore the award violated fundamental principles of Russian law.7