Alternate Dispute Resolution Law at Russia
Russia has established a comprehensive legal framework for Alternative Dispute Resolution (ADR), encompassing both mediation and arbitration. These mechanisms aim to provide efficient, cost-effective, and amicable solutions to various disputes, including commercial, civil, labor, and consumer-related issues.
⚖️ Legal Framework for ADR in Russia
1. Arbitration
Russia's arbitration system operates under a dual regime:
International Commercial Arbitration: Governed by the Law of the Russian Federation No. 5338-1 dated 7 July 1993 on International Commercial Arbitration (the ICA Law). This law closely follows the UNCITRAL Model Law and applies to international arbitration proceedings seated in Russia. It also includes provisions applicable to foreign arbitrations, such as the obligation of a court to refer parties to arbitration if a matter brought before the court is the subject of an arbitration agreement and the right to apply for interim measures in courts.
Domestic Arbitration: Regulated by Federal Law No. 382-ФЗ dated 29 December 2015 on Arbitration (Arbitration Proceedings) in the Russian Federation (the DCA Law), which entered into force on 1 September 2016. This law replaced the previous law of 2002 and applies to domestic arbitration with certain provisions applicable to international commercial arbitration seated in Russia. It includes provisions on record keeping, liability of institutions and arbitrators, mandatory notification of a legal entity on corporate disputes between its shareholders, and admission of foreign arbitral institutions to act in Russia.
The DCA Law introduced significant reforms, including the establishment of a licensing regime for arbitration institutions and specific rules for resolving corporate disputes. Notably, certain corporate disputes can only be referred to institutional arbitration. The law also provides for the recognition and enforcement of foreign arbitral awards in Russia.
2. Mediation
Mediation in Russia is governed by the Federal Law dated July 27, 2010, No. 193-ФЗ “On the Alternative Dispute Resolution Procedure with the Participation of an Intermediary (Mediation Procedure)”. The law defines mediation as a voluntary and confidential process where an impartial third party (the mediator) assists the disputing parties in reaching a mutually acceptable agreement. Mediation can be initiated at any stage of a dispute and is applicable to various types of disputes, including civil, administrative, labor, and family matters.
The law sets out the principles of mediation, including voluntary participation, confidentiality, and impartiality of the mediator. It also outlines the procedure for conducting mediation, which is determined by an agreement between the parties. The duration of the mediation procedure should not exceed 180 days, except when the dispute is referred to a court or arbitration court, in which case the mediation period should not exceed 60 days.
🏛️ ADR Institutions and Practices
Arbitration Institutions: Russia recognizes both domestic and foreign arbitration institutions. Notable domestic institutions include the International Commercial Arbitration Court (MKAS) and the Maritime Arbitration Commission (MAC) at the Chamber of Commerce and Industry of the Russian Federation. These institutions are authorized to administer arbitration proceedings in Russia. (Financier Worldwide)
Mediation Centers: Various mediation centers operate in Russia, providing services to facilitate dispute resolution. These centers offer mediation services for a range of disputes, including commercial, civil, and family matters. The mediation process is typically conducted by trained and certified mediators who adhere to the principles set out in the Federal Law on Mediation.
📊 ADR Utilization and Challenges
Despite the established legal framework, the practical application of ADR mechanisms in Russia faces several challenges:
Limited Adoption: Mediation is not widely used, and parties often prefer to resolve disputes through litigation or arbitration. This is partly due to a lack of awareness and understanding of mediation processes among the public and legal professionals.
Enforcement Issues: While arbitration awards are generally enforceable in Russia, the enforcement of mediation agreements can be more complex. Mediation agreements entered into by the parties without transferring the dispute to court are treated as civil transactions, and enforcement may require initiating judicial or arbitration proceedings.
Cultural Factors: There is a strong tradition of litigation in Russia, and ADR methods have not yet become mainstream. This cultural inclination towards court proceedings may hinder the widespread adoption of ADR.
✅ Conclusion
Russia has established a comprehensive legal framework for ADR, encompassing both mediation and arbitration. While these mechanisms are legally supported, their practical application remains limited. Continued efforts to promote ADR, including awareness campaigns and professional training, are essential to integrate these methods more fully into Russia's dispute resolution landscape.
RELATED Blog
0 comments