Commercial Disputes Involving European Companies in Russian State Courts: Relevant Tendencies in the Judicial Practice

There is currently a steady trend in Russian state courts whereby if a Russian company brings a contract-based claim against its European counterparty to a Russian state court, the Russian court recognizes itself as competent to hear the dispute. The Russian court rejects the defendant's objections to leave the claim without consideration on the merits due to the presence in the contract of an arbitration clause in favor of a foreign arbitration institution (e.g., ICC, SCC, LCIA, SIAC, etc.) and continues consideration of the dispute on the merits on the basis of Article 248.1 of the Arbitration Procedure Code of the Russian Federation. The article below provides an overview of current trends in Russian and foreign court practice.