Ukraine Fallout: Russian Law May Weaken International Arbitration Framework

As it was preparing for war, Russia undermined an international pact that has managed global arbitration cases since the height of the Cold War.

With an eye toward the future, U.S. and European Union officials took care this year when imposing sanctions on Russia to leave open an avenue to resolve corporate disputes. Russia, however, is showing no interest in troubleshooting trade conflicts. Instead, the Kremlin has built a barrier that undermines an international pact that has managed global arbitration cases since the height of the Cold War.

The Russian Duma adopted legislation in 2020 amid little fanfare to protect Russian companies subject to international arbitration proceedings. The law, On Introducing Changes to the Arbitration Procedure Code of the Russian Federation (Law No: 171-FZ), creates a potentially damaging precedent for corporate conflict resolution. The threat to international corporate dealmaking has come into sharper focus as the war in Ukraine drags on…

Read the complete story here.

Featured Arbitrators

ad
View all

Read these next

Category

The Tide Rises: Will Biden’s Blue Wave Wash Away Mandatory Arbitration?

This article first appeared on the Financial Institutions Law Alert, here. Congressional rumblings about outlawing mandatory arbitration clauses are relatively common, but they have not been successful. Ever since a...

By Joseph Calabrese
Category

Arbitration Conversation No. 80: Adriana Vaamonde, Exec Director, Centro de Arbitraje Cámara de Caracas

In this episode of the Arbitration Conversation, Amy interviews Adriana Vaamonde, Exec Director, Centro de Arbitraje Cámara de Caracas. Adriana is a Legal Advisor in International Commercial Arbitration, Arbitrator, and...

By Adriana Vaamonde Marcano, Amy Schmitz
Category

A Note on Badgerow v. Walters et al. (No.20-1143, March 31,2022)

At her confirmation hearing Justice Kagan noted “So in that sense, we are all originalists.” (U.S. Senate Judiciary Committee Hearing, p.62, 6/29/2020) Her observation was prescient as adherence to the...

By Terry Moritz

Find an Arbitrator