Compensation of Losses Incurred as a Result of Actions of Third Parties: Russian Law and International Practice

The purpose of this article is to establish the approaches of Russian courts and international arbitration institutions to the problem of recovering costs incurred by a counterpart to a third party as losses (damages). In particular, the following questions should be answered. Is it possible to claim the penalties paid to the other party of the contract as losses (damages)? Can administrative fines paid by one of the parties to the contract be regarded as losses (damages) of this party? Can they be recovered from the counterpart who breached the contract? What are the standards of proof for such damages under national and international law? Specifically, do these expenses meet the criteria of foreseeability of losses? Is there a cause-and-effect link between the incurred losses and the counterpart's actions? What are the possible defence arguments against the aforementioned allegations in the court or arbitration proceedings?