Trends and developments
Trends and developments
Are there any notable trends or recent legal developments in your jurisdiction’s shipping industry?
Yes, there have been significant developments in legislation relating to or affecting the shipping industry in Russia in the past few months – most notably:
- New rules on ship registration came into force at the beginning of 2018, which take into account the developments in this sphere over the past few years;
- A new ship registry with a specific regime – the Russian Open Ship Registry – was established, to start functioning from early 2019;
- Special administrative districts have been established in Vladivostok (Russkiy Island) and Kaliningrad (Oktyabr’skiy Island), in addition to the Vladivostok Free Port Zone established in 2015; and
- There have been further developments in legislation concerning the Arctic and the Northern Sea Route.
Which ships are eligible for registration in the national shipping register(s) and which parties may register ships?
The principal law regulating the merchant shipping industry in Russia is the Merchant Shipping Code; the Code of Internal Waterways Transport provides similar regulations for shipping on internal waters, but since internal shipping is largely reserved for ships under the Russian flag, this chapter does not consider these issues. As per the amendments to the Merchant Shipping Code which enter into force on 31 January 2019, there are now five ship registries in Russia:
- The State Registry of Ships – this is the principal registry, in which vessels of all types (other than small craft) can be registered provided that they are owned by Russian nationals, Russian legal entities or the Russian state or municipalities. There is no age restriction, as long as the vessel is classified under one of the Russian classification societies (ie, the Russian maritime register of shipping or the Russian register of shipping);
- The Bareboat Charter Registry – this is intended for temporary registration of ships which are permanently registered abroad, but have been chartered by Russian individuals or entities;
- The Russian International Registry of Ships – this separate registry has been in operation since 2006, where vessels both owned and bareboat chartered by Russian nationals and entities can be registered. Restrictions by age and permitted type of activity apply to ships registered in this registry, but substantial regulatory and fiscal exemptions apply in comparison to the two aforementioned registries;
- The Russian Open Registry of Ships – this new registry, which becomes operative on 31 January 2019, is somewhat similar in concept to the Russian International Registry of Ships, although vessels registered in this registry will not be permitted to engage in commercial coastal shipping (ie, carriage between Russian ports and conducting other operations in Russian territorial seas and internal waters). This is the only Russian ship registry where ships owned by foreign individuals or legal entities can be registered. Small craft intended for non-commercial use and sailing and leisure vessels will also be entitled to registration in this registry; and
- The Small Craft Registry – this registry is open to small craft intended for non-commercial use.
What are the procedural and documentary requirements for registration?
Registration in all ship registries other than the Small Craft Registry is handled by harbour masters of seaports. For ships other than fishing vessels, the applicants (owners or bareboat charterers of the respective vessels) can freely choose one of the ports which is entitled to register ships in the respective registry. For the Russian International Registry of Ships, registration is handled by 12 specifically designated ports; for the Russian Open Registry of Ships, only harbour masters of two ports – Kaliningrad and Vladivostok – are entitled to effect registration.
Under the current rules of ship registration, which are approved by the Ministry of Transport, before applying for temporary registration of a vessel, the applicant must first apply to one of the authorised classification societies for identification of the vessel in question and verification of information on the ships provided by the applicant (for the State Registry of Ships and the Bareboat Charter Registry, only the Russian maritime register of shipping or the Russian register of shipping are authorised; vessels intended for registration with the Russian International Registry of Ships or the Russian Open Registry of Ships can also have class approved by Bureau Veritas or RINA). If confirmed by the classification society, the applicant can file an application for registration, together with supporting documentation confirming the applicant’s legal status and rights to the vessel, the vessel’s technical details and payment of the respective state duty for registration.
Where such documentation is complete, the registration authority must first grant the vessel a temporary right to sail under the Russian flag (valid for three months) no later than the next day after receipt of the application. Thereafter, the authority has 20 working days to check the application and documents in detail; if the application complies with all requirements, the authority must issue a permanent certificate confirming the right to sail under the Russian flag within the next three working days.
Grounds for refusal
On what grounds may a registration application be refused?
An application for registration can be refused if:
- an unauthorised party applied for registration;
- the vessel’s registration in a foreign registry (where applicable) has not been duly terminated (or suspended in case of temporary registration under the Russian flag);
- documents submitted for registration do not comply with requirements of Russian law (eg, documents in a foreign language without a certified translation or foreign documents that have not been legalised or apostilled where applicable);
- the documents confirming the applicant’s rights to the vessel are not in order; or
- there is a conflict between the rights in respect of which an application is filed and rights already registered.
Are there any particular advantages of flying your jurisdiction’s flag?
In accordance with the Merchant Shipping Code, a number of activities are reserved for vessels under Russian flag, including:
- carriage between Russian ports;
- offshore activities in Russian waters; and
- most importantly, operations in the Russian sector of the Arctic, such as icebreaking support, salvage operations and the first leg of carriage of oil, gas and coal from Russian Arctic ports.
The Code of Internal Waterways Transport similarly reserves commercial shipping on internal waterways for ships flying the Russian flag. In practice, this is the principal reason for flying the Russian flag.
To provide additional incentive for ship registration in Russia, substantial benefits were introduced in 2006 for ships registered in the Russian International Registry of Ships, primarily of a fiscal nature – namely, exemption from import duties and taxes, property tax and social taxes on crew salaries among others. The Russian Open Registry of Ships is also intended to provide certain benefits for operators of ships registered therein, but not all of the respective legislation is yet in force and these terms remain to be clarified.
Liens and mortgages
How are encumbrances such as maritime liens and mortgages registered in your jurisdiction and what are the effects of registration?
Mortgages of ships which are permanently registered in Russia must be registered in the respective ship registry in order to be valid; registration allows the mortgagee to exercise all the rights provided by Russian law to a mortgagee of a ship. Maritime liens are not required and cannot be registered under Russian law, but still bind the ship for one year from the date on which a claim secured by a maritime lien arises (although this period is suspended by the arrest of the vessel).
Securable claims and priority
What claims can be secured by maritime liens and what is the order of priority?
In accordance with Article 367 of the Merchant Shipping Code, the following claims against a shipowner can be secured by a maritime lien:
- for amounts due to the master and the crew;
- for compensation of damage to life and health of an individual in direct connection with operations of the vessel;
- for salvage;
- for payment of port, canal and similar dues; and
- for compensation of actual damage caused in the course of the vessel’s operations which results from loss of or damage to property other than cargo, containers or passengers’ property.
However, this does not apply to claims which arise in connection with pollution caused by or in connection with the carriage of oil, hazardous and noxious substances or radioactive substances.
The above list is in descending order of priority, except that claims for remuneration for salvage are to be compensated ahead of other claims which arose prior to claims for remuneration for salvage.
Under what circumstances are maritime liens extinguished?
Maritime liens are extinguished by proper settlement of claims secured by the lien or upon one year from the date on which a claim secured by a maritime lien arises (although this period is suspended by the arrest of the vessel).
Are foreign liens recognised in your jurisdiction?
Yes, foreign liens are recognised in Russia.
Transfer and assignment
Which rules govern the transfer and assignment of liens, mortgages and other encumbrances?
The transfer and assignment of liens, mortgages and other encumbrances are governed by the International Convention on Maritime Liens and Mortgages 1993 (to which Russia is a party) and by the respective provisions of the Merchant Shipping Code and other applicable Russian legislation (eg, the Civil Code and the Federal Law on Hypothec).
Grounds for arrest
Under what circumstances can a ship be arrested in order to secure a claim against it?
A ship can be arrested to secure a maritime claim as defined by the Convention Relating to the Arrest of Sea-Going Ships 1952 and by the respective provisions of the Merchant Shipping Code.
Can a ship be arrested to secure a non-maritime claim?
The scope of ‘maritime’ arrest does not include arrest as a measure of enforcement of a judgment or award, or arrest of a ship as security in civil, administrative or criminal proceedings; therefore, technically, a ship can be arrested on par with any other kind of property within the frames of these later proceedings.
Can a ship be arrested to secure a claim against a sister ship?
A ship owned by the party responsible under a maritime claim can be arrested to secure a claim relating to another ship which was owned by a responsible party or operated by it under a bareboat, time or voyage charter (with the exception of claims relating to the title to the ship or its ownership).
What are the procedural and documentary requirements for seeking arrest of a ship?
A party seeking arrest must apply to a court which would generally be competent to consider the relevant claim – that is, a court of general jurisdiction in case of a crew member’s or passenger’s claim or a commercial court in case of a claim between commercial entities in the territorial jurisdiction where the vessel is physically located. An application must be supported by documents sufficient to confirm prima facie the existence of a maritime claim and the fact that the vessel is owned by a party responsible under such claim.
The procedure to apply for arrest is also generally regulated by the laws applicable to the respective court or arbitration proceedings – in particular, the Code of Civil Procedure and the Code of Arbitration Procedure (which governs procedure in commercial courts, which according to historical tradition are called ‘arbitration courts’ in Russia).
What security must the arresting party put up in order to secure arrest of a ship and how is this security calculated?
The provisions of the Merchant Shipping Code which govern ship arrest set no requirement to put up security as a precondition for arrest of a ship under a maritime claim. However, the Merchant Shipping Code entitles the court which is being petitioned for arrest to require the applicant to provide security in an amount and form determined by the court. In addition, taking into account the applicable rules of the Code of Arbitration Procedure, an application for arrest can be treated as an application for preliminary security measures, which must be supported by proof of security provided by the applicant in the amount requested. The principal form of security is a cash deposit on the court’s account; however, in view of the inconvenience of this form, other security instruments are accepted – guarantees issued by Russian banks being the most preferred.
What security can the arrested party provide for release of an arrested ship?
The respondent can provide counter-security as a condition for the release of an arrested ship. The form and amount of security can be determined by the parties’ agreement, but in the absence of such agreement they are determined by the court. However, the amount of security should not exceed the value of the vessel.
Judicial sale of ships
Procedure Foreign sales
Under what circumstances are foreign sales recognised?
Foreign judicial sales will generally be recognised, provided that the rules governing sale as provided by the laws of the country of the sale have been complied with and proper notifications have been served on the parties involved.
What is the legal procedure for the judicial sale of ships in your jurisdiction?
Forced sale of the vessel is effected on the basis of a respective court judgment. Once the judgment enters into force, the court issues an executory order which the claimant submits to the bailiff service for enforcement. The bailiffs open enforcement proceedings, arrest the vessel in question, appoint a specialist organisation to organise the sale and arrange for evaluation. Sale is normally conducted in the form of an auction.
Limitation of liability
What parties may limit liability for maritime claims?
Russia is a party to a number of international conventions which provide the possibility to limit liability, including:
- the Convention on Limitation of Liability for Maritime Claims 1976 (together with the 1996 Protocol thereto);
- the International Convention on Civil Liability for Oil Pollution Damage 1969 (CLC), with the 1992 Protocol; and
- the International Convention on Civil Liability for Bunker Oil Pollution Damage 2001 (Bunker Convention).
The provisions of these conventions have been incorporated into the Merchant Shipping Code.
Russia has also ratified the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea 1996 (HNS Convention) and although this treaty has not yet entered into force, corresponding provisions of the Merchant Shipping Code (Chapter XIX) are applied as national Russian regulations.
In accordance with the 1976 convention, the shipowner and the salvor may limit their liability under the maritime claims, as can the insurer that insured liability under the respective claims. Under the CLC, Bunker Convention and HNS Convention/Chapter XIX of the Merchant Shipping Code, registered owners of the ship are responsible and may limit their liability as provided in the respective documents.
For what claims can liability be limited? Are any claims explicitly exempt from the limitation of liability?
In accordance with Chapter XXI of the Merchant Shipping Code (by which the 1976 convention was implemented into Russian national legislation), liability can be limited for the following claims:
- claims in respect of loss of life or personal injury or loss of or damage to property, occurring on board or in direct connection with the operation of the ship or with salvage operations;
- claims in respect of loss resulting from delay in the carriage by sea of cargo, passengers or their luggage;
- claims in respect of other loss resulting from infringement of rights other than contractual rights, occurring in direct connection with the operation of the ship or salvage operations; and
- claims of a person other than the person liable in respect of measures taken in order to avert or minimise loss for which the person liable may limit its liability and further loss caused by such measures.
At the same time, the rules of this chapter explicitly do not apply to the following types of claim:
- for remuneration for salvage, including special compensation, or for contribution under general average;
- compensation for oil pollution damage (to which the CLC/Chapter XVIII of the Merchant Shipping Code apply);
- compensation for damage in connection with the carriage of hazardous and noxious substances (to which Chapter XIX of the Merchant Shipping Code applies);
- compensation for nuclear damage;
- in respect of the raising, removal, destruction or the rendering harmless of a ship which is sunk, wrecked, stranded or abandoned;
- in respect of the removal, destruction or the rendering harmless of the cargo of the ship;
- claims in respect of loss of life or personal injury or loss of or damage to property caused to the employee of the shipowner or salvor, their heirs and dependants, where the respective employment contract is governed by Russian law;
- claims in respect of loss of life or personal injury caused to passengers, where the shipowner and the passenger are Russian entities or nationals; and
- claims in respect of loss of life or personal injury caused to individuals in direct connection with operation of the vessel or with salvage operations, where the shipowner and an individual or salvor and individual are Russian entities or nationals.
What limits are set for eligible claims?
With regard to the maritime claims that can be limited in accordance with the 1976 convention, Russia adopted the limits introduced by the 2012 amendments to the 1996 Protocol:
- for claims in respect of loss of life or personal injury caused to individuals:
- 3.02 million units of account for vessels of tonnage not exceeding 2,000 units; and
- for vessels of tonnage exceeding 2,000 units, adding to each unit of tonnage:
- 1,208 units of account between 2,001 and 30,000 tonnage units;
- 906 units of account between 30,001 and 70,000 tonnage units; and
- 604 units of account for each unit of tonnage in excess of 70,000; and
- for all other claims:
- 1.51 million units of account for vessels of tonnage not exceeding 2,000 units; and
- for vessels of tonnage exceeding 2,000 units, adding to each unit of tonnage:
- 604 units of account between 2,001 and 30,000 tonnage units;
- 453 units of account between 30,001 and 70,000 tonnage units; and
- 302 units of account for each unit of tonnage in excess of 70,000.
What rules and procedures govern the establishment of limitation funds?
A limitation fund may be created by the party that can be held responsible under a respective claim with a court in which claims against the responsible party have been brought. The amount of the fund is calculated as the limitation amount plus interest calculated from the date of the incident to the date of creation of the fund. The fund can be created by depositing cash in the court’s account or by providing a bank guarantee or other financial security acceptable to the court.
How are liability funds distributed?
All issues relating to distribution of the limitation fund are decided by the court with which the fund is created. The fund must be distributed between parties entitled to put forward claims against the responsible party, proportionally to their established claim amounts.
Carriage of goods
International conventions Carrier’s responsibility
What is the official extent of the carrier’s responsibility for goods?
The carrier has a duty to “duly and carefully load, handle, stove, carry, store, care of and discharge the cargo” from the moment of accepting it for carriage to the moment of its delivery.
Contractual limitation of liability
May parties contract out of any legal provisions governing cargo liability?
The parties can contract out of liability in cases where carriage is not conducted in accordance with the bill of lading (or another document of title) or where an agreement in respect of release from liability or reduction of limits of liability concerns the period between acceptance of cargo for carriage and its loading onto the vessel and/or the period between its discharge and delivery.
Title to sue
Who has title to sue on a bill of lading?
The shipper or a party to which a bill of lading was transferred in due order can sue under a bill of lading. The shipper and consignee can also assign the right to sue the carrier to the freight forwarder or the insurer.
What is the time bar for cargo claims?
The time bar for claims arising from a contract of carriage of cargo is one year.
Definition of ‘carrier’ and ‘goods’
How are ‘carrier’ and ‘goods’ defined in respect of cargo claims? Is there any especially pertinent case law on this issue?
The ‘carrier’ is defined as a party which entered into the contract of carriage of goods with the shipper or the charterer, or on behalf of which a contract of carriage is entered into. There is no definition of ‘cargo’, but generally any items accepted for carriage under a contract of carriage of goods will be considered as cargo.
Defences available to carrier
Under what circumstances may the carrier rely on the perils of the sea defence? What other defences are available to the carrier?
In order to rely on the ‘perils of the sea’ defence, the carrier must prove that loss or damage of cargo, or delay in delivery, occurred due to such circumstances and not to the carrier’s own deliberate or negligent actions.
The carrier is also entitled to an exemption from liability in the following cases:
- force majeure events;
- faults in navigation (unless cargo is carried in cabotage);
- measures to save lives or reasonable attempts to save property at sea;
- fire, if it occurred without the fault of the carrier;
- acts or orders of authorities (eg, detention, arrest or quarantine);
- acts of war or civil commotions;
- acts or omissions of the shipper or the consignee;
- inherent defects in the cargo or natural loss;
- faults in packing which are not evident or inadequate marking;
- strikes or other events which caused stoppage of works; and
- other circumstances which are not due to the fault of the carrier, its employees or agents.
What legal protections and defences against cargo claims are available to agents of the carrier and other third parties (eg, Himalaya clauses)?
A Himalaya clause is de facto included under the Russian legislation, and exemptions from and limitations to liability are available to agents or employees, provided that they can prove that they acted within the scope of their duty.
Deviation from route
Under what circumstances is deviation from the agreed route allowed?
Deviation from an agreed route (if a particular route was agreed on, which is rarely the case, with choice of route being in the purview of the carrier, provided that the route is customary) is allowed in cases where exemptions from liability for the carrier would generally apply – in particular, in case of attempts to save life or reasonable attempts to salvage property at sea.
Claims against shipper
What claims can the carrier pursue in respect of the shipper’s failure to meet its obligations?
Russian law generally does not limit the list of claims which the carrier can pursue against the shipper. The general rule in this respect is similar to that provided by the Hague-Visby Rules: the shipper is liable for losses caused to the carrier unless it proves that such losses are not due to the shipper’s fault or to a fault of the parties for performance for which the shipper is liable.
Multimodal carriage of goods
How is multimodal carriage regulated in your jurisdiction?
There are no specific regulations in respect of multimodal carriage in Russian law. In such cases, relations between the parties are regulated by the general rules in respect of carriage, provided in the respective chapter of the Civil Code, and by respective contracts.
Is your jurisdiction party to any international conventions on the carriage of goods by sea? If so, does the relevant domestic implementing law contain any notable modifications (eg, extensions to the scope of application)?
Russia is party to the Hague-Visby Rules. The rules are implemented into national legislation as Chapter VIII of the Merchant Shipping Code without substantial modifications.
Collision and pollution What rules and procedures (under both domestic and international law) apply to the prevention of, liability for and remedy of:
Russia is a party to the Convention for the Unification of Certain Rules of Law with respect to Collisions between Vessels 1910, which was implemented into national legislation by Chapter XVII of the Merchant Shipping Code. Russia has also adopted the International Regulations for Preventing Collisions at Sea 1972.
(b) Oil pollution?
In addition to the International Convention on Civil Liability for Oil Pollution Damage 1969, Russia has ratified the International Convention for the Prevention of Pollution from Ships 1973 (MARPOL).
(c) Other environmental damage caused by a ship?
The International Convention on Civil Liability for Bunker Oil Pollution Damage 2001, Annexes II to VI of MARPOL and the International Convention on Liability and Compensation for Damage in connection with the Carriage of Hazardous and Noxious Substances by Sea 1996.
What is the legal regime governing salvage and general average?
Rules relating to salvage are contained in Chapter XX of the Merchant Shipping Code and are based on the International Convention on Salvage 1989, which Russia ratified in 1998. Provisions of Russian legislation which govern the general average (Chapter XVI of the Merchant Shipping Code) are largely based on the 1994 version of the York-Antwerp Rules.
Places of refuge
What framework governs access to places of refuge for ships in distress?
The status and activities of ports are regulated by a number of federal laws, including the Merchant Shipping Code, the Federal Law on Seaports and the Federal Law on Internal Sea Waters, Territorial Sea and Adjacent Zone. In accordance with the latter law, foreign ships (other than naval vessels and state-owned vessels involved in non-commercial operations) can enter Russian ports freely as long as such ports are open to foreign ships. However, in extreme situations, all foreign ships can enter Russian ports, provided that such entry is reported to the competent Russian authorities without delay.
What rules and procedures apply to the removal of wrecks in your jurisdiction?
Russia is not a party to the Nairobi International Convention on the Removal of Wrecks 2007. Issues relating to foundered vessels and other items considered as wrecks are governed by Chapter VII of the Merchant Shipping Code.
Under what circumstances can the authorities order removal of wreckage?
The competent authorities (ie, harbour masters of respective ports) are entitled to order removal of wreckage where it poses a threat to navigation, creates a risk to the marine environment or obstructs fishing activities, activities of the port or works undertaken in the port.
What regime governs the imposition of security measures on ships and in port facilities?
As a party to the International Convention for the Safety of Life at Sea, Russia has also adopted the International Ship and Port Facility Security Code, implementing its provisions in a number of items of internal legislation, most notably the Federal Law on Transport Security (which was adopted in 2007).
What rules apply to the qualification and conduct of security officers on ships and in port facilities? Are armed guards allowed on ships?
In accordance with the Federal Law on Transport Security, entities providing ship security services and their employees involved in these activities are subject to attestation under an order established by the government.
What rules govern the provision of security information to port authorities?
Rules governing the provision of information and documents regarding the vessel to port authorities are provided in the general rules of navigation and stay of ships in Russian seaports, which are issued by the Ministry of Transport.
What maritime risks must be covered under the law and what is the mandatory level of coverage?
Russian law provides for obligatory insurance of a number of risks associated with merchant shipping:
- salaries and other amounts due to members of the crew – level of coverage determined based on the extent of the relevant shipowner’s liabilities;
- claims for loss of life or personal injury caused to passengers and loss of baggage – up to Rb2,025,000 per loss of life and up to Rb23,000 per passenger for loss of baggage;
- for registered owners of vessels carrying over 2,000 tons of oil in bulk – liability for damage from oil pollution up to the limit of liability (calculated on the basis of 4.51 million units of account for ships not exceeding 5,000 units of tonnage and 631 units of account for each tonnage unit over 5,000, with a maximum 89.77 million units of account);
- for registered owners of vessels involved in carriage of hazardous and noxious substances – liability for damage in connection with the carriage of hazardous and noxious substances up to the limit of liability (calculated on the basis of 10 million units of account for ships not exceeding 2,000 units of tonnage, 1,500 units of account for each tonnage unit over 2,000 and 360 units of account for each tonnage unit over 50,000, with a maximum 100 million units of account); and
- claims for damage from bunker oil pollution for owners of vessels exceeding 1,000 tonnage units – up to the limit of liability which would apply in accordance with the rules of limitation of liability under maritime claims.
Insurable risks and ships
What other risks are typically covered by marine insurance contracts concluded in your jurisdiction and what ships are insurable?
Standard hull and machinery, protection and indemnity, war risks and other risks are typically covered by marine insurance contracts, although there is no requirement in the law to insure such risks. The law also does not provide for any specific limitations or requirements in respect of insurable vessels; specific requirements are set by the insurers themselves.
What is the legal regime governing marine insurers’ subrogation rights?
Marine insurance contracts are governed by Chapter XV of the Merchant Shipping Code, as well as the general provisions relating to insurance provided in the Civil Code. The insurer that paid out the compensation becomes entitled to claim from a party responsible for causing the relevant losses to the extent of the paid amount and in an order which would apply for claims of the insured or the beneficiary.
Jurisdiction and dispute resolution
What courts are empowered to hear maritime cases in your jurisdiction?
There are no special admiralty courts in Russia. Depending on the parties involved and the type of claim, the matter would be considered by either the court of general jurisdiction (for claims by individuals against commercial companies and vice versa, such as employment disputes) or commercial courts (for claims between commercial companies).
Exclusive jurisdiction and arbitration clauses
Under what conditions will exclusive jurisdiction and arbitration clauses in shipping contracts be held as valid?
As far as claims arising from shipping contracts are concerned, dispute resolution clauses referring disputes to a particular foreign court or to arbitration will be recognised, with few exceptions (eg, where a dispute concerns rights to a vessel permanently registered in Russia (eg, sale-purchase contract or mortgage contract)).
What is the general state and prevalence of maritime arbitration in your jurisdiction?
Arbitration is a fairly popular means of resolving disputes in shipping-related cases, although most shipping cases considered in Russia are dealt with by the courts. A relatively large share of shipping-related disputes are considered by foreign courts or arbitration institutions.
A special maritime arbitration institution has been in operation since 1930 – the Maritime Arbitration Commission at the Russian Chamber of Commerce and Industry. Although still active, it is undergoing reforms together with the whole arbitration system in Russia, with the aim of increasing the attractiveness of arbitration as a means of dispute resolution.
Recognition and enforcement
What regimes govern the recognition and enforcement of foreign judgments and arbitral awards?
Russia is a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958. As such, in most cases, unless the award conflicts with the exclusive jurisdiction of the Russian courts or its enforcement would be in breach of public order, it will be recognised and enforced by way of filing a respective application to the competent Russian court (in most cases to a commercial court where the responsible party is located). The court reviews the application without reconsidering the case on the merits. Procedural rules on enforcement are contained in the Code of Civil Procedure and the Code of Arbitral Procedure, which regulates procedure in commercial courts (which are traditionally known in Russia as ‘arbitration courts’).