Foreign Court Documents in Russia

Anastasia BurkovaDeputy Head of Legal

of “BNP PARIBAS” ZAO

February 2013

Disputes are considered:

• by foreign courtby foreign court//arbitration tribunalsarbitration tribunals

complicated disputes;

disputes under foreign law;

• by Russian courtsby Russian courts

on insolvency;

enforcement of Russian collateral;

on registration steps with respect to Russian legal entities;

on disputes out of contracts with state authorities and state companies;

in case of assignment when the arbitration clause is not changed.

Consideration of disputesConsideration of disputes

all decisions are subjective opinion of a judgeall decisions are subjective opinion of a judge;

both courts are rather fair;both courts are rather fair;

Russian courts are quicker, but foreign courts are more adapted Russian courts are quicker, but foreign courts are more adapted toto complex disputes.complex disputes.

Foreign courts vs Russian courtsForeign courts vs Russian courts

Court cases with foreign companies in RussiaCourt cases with foreign companies in Russia

arbitrazh cases with foreign companies

total number of cases

495 995495 995

905 905

0.2 %0.2 %

arbitrazh cases with foreign companies

total number of cases

791 755791 755

1017 1017

0.1 %0.1 %

IH 2011

(for apr 325 mln Euro)

IH 2012

(for apr 800 mln Euro)

Recognition is not automatic;Recognition is not automatic;

There should be obtained the Russian state courtThere should be obtained the Russian state court approval on enforcement.approval on enforcement.

RecognitionRecognition

Recognition for State DecisionsRecognition for State Decisions

Recognized Recognized all foreign all foreign decisionsdecisions

Not Not recognizedrecognized

RecognizedRecognizedbased onbased ontreatiestreaties

Recognized Recognized on mutual on mutual

basisbasis

Russia Russia after 2009after 2009

Russia Russia before 2009before 2009

In the past: only at the existence of the relevant treatyIn the past: only at the existence of the relevant treaty between the states - no agreements for USA, UK,between the states - no agreements for USA, UK, France, GermanyFrance, Germany;;

In the present: still on a case by case basis in the absenceIn the present: still on a case by case basis in the absence of a bilateral treaty;of a bilateral treaty;

Recognition based on the principles of internationalRecognition based on the principles of international politeness and reciprocity.politeness and reciprocity.

For example, Higher Arbitrazh Court decision VAS-6580/12, dated 26 July 2012, recognized English court decision, or decision VAS-13688/09, dated 7 December 2009, recognized Dutch court decision.

Foreign CourtsForeign Courts

recognized under New York Convention;recognized under New York Convention;

explanation of higher courts that the explanation of higher courts that the decisions decisions shall not be reconsidered;shall not be reconsidered;

can be permanent and ad hoc.can be permanent and ad hoc.

Arbitration TribunalsArbitration Tribunals

arbitration is still preferablearbitration is still preferable;;

but foreign court decisions are morebut foreign court decisions are more and more recognized in Russia.and more recognized in Russia.

Foreign court decision vs arbitration decisionForeign court decision vs arbitration decision

Recognition of Foreign DecisionsRecognition of Foreign Decisions

79 88

145

174

72

0

50

100

150

200

2008 2009 2010 2011 1H 2012

Number of applications on recognition of foreigncourt and arbitration decisions

public orderpublic order;; Explanations are prepared by Higher Arbitrazh Court. Public order only in the extraordinary case. For example, agreement on corruption. Different norms of law in other countries is not a public order.

procedural issues;procedural issues; Absence of the arbitrator appointed by one of the parties.

misprints;misprints; Misprints not affecting the nature and sense of the decision are OK.

ad hoc arbitrationad hoc arbitration Not correct form of the decision.

Problems with enforcementProblems with enforcement

go to the higher courtsgo to the higher courts;;

search for similar precedents;search for similar precedents;

provide examples of recognition of Russianprovide examples of recognition of Russian state court decision in the particular countrystate court decision in the particular country (for state court decisions);(for state court decisions);

enforce abroad if there are some property enforce abroad if there are some property of a legal entity there.of a legal entity there.

What to do if there are still problems with enforcement?What to do if there are still problems with enforcement?

Numerous discussions in Russia – though not Numerous discussions in Russia – though not

ready to do this on one side basisready to do this on one side basis 17 February 2012 – Hague conference 17 February 2012 – Hague conference on private international law – EU-Russia:on private international law – EU-Russia: Towards full mutual recognition of judicialTowards full mutual recognition of judicial decisions.decisions.

What is being done from the point of view of state authorities?What is being done from the point of view of state authorities?

For additional information please contact usFor additional information please contact us::

Anastasia BurkovaAnastasia BurkovaDeputy Head of Legal Deputy Head of Legal of “BNP PARIBAS” ZAOof “BNP PARIBAS” ZAODirect: +7 (495) 225-8930Direct: +7 (495) 225-8930E-mail: Anastasia.Burkova@bnpparibas.comE-mail: Anastasia.Burkova@bnpparibas.com