Comments by the Association for the Promotion of Arbitration (RAA) on Draft Legislative Acts Aimed at Improving Arbitration in Russia
Published 31 March 2014
Introduction
Despite the fairly liberal Russian legislation on arbitration courts that was enacted in the 1990s, arbitration as a form of dispute resolution has yet to gain widespread popularity in Russia. There are quite a few reasons for that, from shortcomings in legislation regulating certain aspects of arbitration proceedings, to numerous abuses in this sphere.
As a result, the business community in Russia still largely mistrusts arbitration as a form of dispute resolution. Studies in this sphere have revealed a number of problems such as the dependence of arbitration courts on the organizations under which they have been established, in matters relating to arbitration proceedings, the formation of arbitral tribunals, making awards, etc.; non-transparency in the appointment of arbitrators; susceptibility to corruption; use of arbitration proceedings to legalize illicit operations, and so forth.
In view of the foregoing, proposals of the Russian Justice Ministry[1] will undoubtedly promote a healthier environment for arbitration, which will inevitably result in the broader use of this alternative form of dispute resolution.
Nevertheless, some of the proposals require further clarification and conceptualization, as shown in this commentary by the Association for the Promotion of Arbitration (Russian Arbitration Association).
[1] The Russian Justice Ministry published draft Bills aimed at reforming arbitration legislation and the system of arbitral institutions in January 2014 - see http://regulation.gov.ru/project/11250.html?point=view_project&stage=2&stage_id=7194