Major Changes In The Laws Governing Functioning Of The Arbitral Tribunals In Russia

The Federal Law dated 29 December 2015 No. 382-FZ 'On Arbitration in the Russian Federation' (hereinafter - the 'Arbitration Law'), became a new step in the development of legislation governing the arbitral tribunals in Russia. In particular, from the entry into force of the said regulatory legal act, provisions of the Federal Law, dated 24 July 2002, No. 102-FZ 'On arbitral tribunals in the Russian Federation' (hereinafter - the 'Law No. 102-FZ') will not apply, except for the arbitration initiated and not completed prior to the Arbitration Law commencement date.

The relevant changes to the laws become effective from 1 September 2016, and a part of the changes enters into force from 1 January 2017.

This review focuses on the most significant changes, but is not limited to them.

I. Changes in the Procedure for Formation of Arbitral Tribunals

Under the Arbitration Law, permanent arbitral tribunals can only be formed at non-profit organizations that have the right to perform the functions of a permanent arbitral institution.

Permanent arbitral institutions will be responsible for the organisational support of arbitration (in particular, ensuring selection procedures, appointment or removal of arbitrators, record keeping, organizing collection and distribution of the arbitration fees, etc.). Powers of the arbitral tribunal to resolve dispute will not be given to arbitral institutions.

The right to exercise the functions of administration of arbitration is given to non-profit organizations by the relevant act of the Government of the Russian Federation on the basis of the recommendation of the Council on improvement of arbitration proceedings.

According to the Arbitration Law, the International Commercial Arbitration Court and the Maritime Arbitration Commission at the Chamber of Commerce of the Russian Federation shall perform the functions of a permanent arbitral institution without entitlement to exercise the functions of a permanent arbitral institution by the Government of Russia.

Despite the preservation of the institution of arbitration courts formed by the parties to resolve specific disputes ('ad hoc'), the legislator chose the way of strengthening their regulation.

In particular, in the new Law the legislator introduces a range of restrictions in respect of arbitral tribunals, formed to consider a specific dispute ('ad hoc'):

arbitral tribunals created for a particular dispute cannot consider corporate disputes; parties to 'ad hoc' arbitration proceedings are not given the right to enter into an agreement to waive the options of appealing to the competent court for assistance; parties to 'ad hoc' arbitration proceedings do not have the right to appeal to the...