Russian Arbitration Center (RAC)

Legal support for disputes considered by the Russian Arbitration Center (RAC) at the Russian Institute of Modern Arbitration (RISA)

The Russian Arbitration Center (hereinafter also referred to as the “RAC”) at the Russian Institute of Modern Arbitration (hereinafter referred to as “RISA”) is a permanent arbitration institution that considers domestic disputes in which there is no foreign element, as well as an institution that is an international commercial arbitration.

Disputes resolved within the framework of international commercial arbitration include disputes arising from relations:

1. involving a party with a place of business abroad;
2. if the place where a significant part of the obligations arising from the relations of the parties is to be performed is located abroad;
3. if the place with which the subject of the dispute is most closely connected is located abroad, as well as disputes arising in connection with the implementation of foreign investments in the territory of Russia or Russian investments abroad.

In order to consider disputes by arbitration, the recommended arbitration clause must be included in the agreement between the parties to the transaction.

If the parties enter into an arbitration agreement, the Arbitration Rules of the RAC become its integral part, and the parties have the right to change the provisions of the Arbitration Rules and agree on other terms of arbitration, unless otherwise provided for by the Arbitration Rules or follows from the essence of such provisions.

It is important to note that the RAC is a permanent arbitration institution that carries out activities to administer arbitration and does not perform any functions to resolve the dispute; such functions are performed by the arbitration panel. The functions of the arbitration panel to resolve the dispute are performed by the arbitrator alone or by several arbitrators collegially, and the powers of the arbitrator to consider the dispute arise at the time of the formation of the arbitration panel, which is considered formed at the time the RAC sends a notice of the formation of the arbitration panel to the parties, as well as to the arbitrator or arbitrators included in the arbitration panel.

Hearing of a case in the Russian Arbitration Center

As part of the hearing of a case in the RAC for the purpose of initiating arbitration, the plaintiff shall submit a procedural document, which shall contain and be accompanied by:

1. the name and contact details of the parties;
2. a brief summary of the claims, and, if the claims are subject to monetary assessment, an indication of the total value of the claims or that the plaintiff is asking the RAC to determine the value of the claims;
3. justification of the RAC’s competence;
4. copies of documents confirming the authority of the person who signed the notice;
5. a document confirming payment of the registration fee;
6. evidence of sending the notice, as well as all documents attached to it, to the defendant (postal receipt and list of attachments).

No later than 20 days from the date of receipt of the notice of commencement of arbitration, the defendant shall have the right to submit a procedural document, which shall contain and be accompanied by:

1. the name and contact details of the parties;
2. agreement or disagreement with the stated claims, a brief statement of the main objections to the claims, the factual circumstances associated with such objections;
3. a brief summary of the counterclaims (if any) and the justification of the RAC's competence in relation to them, and also, if the counterclaims are subject to monetary assessment, an indication of the total value of the claims or that the defendant is asking the RAC to determine the value of the claims;
4. copies of documents confirming the authority of the person who signed the response.

The parties may, at their own discretion, agree on the place of arbitration or the procedure for determining it, and failing such agreement, the place of arbitration shall be determined by the arbitral tribunal. However, the place or places of oral hearings may differ from the place of arbitration, and the parties may, at their own discretion, agree on any place for holding oral hearings. The arbitral tribunal shall issue an order to hold oral hearings if:

1. there is an agreement between the parties to hold oral hearings;
2. at least one of the parties requests the arbitral tribunal to hold oral hearings.

After the arbitral tribunal has been formed, the parties to the arbitration shall agree on such place for holding oral hearings with the arbitral tribunal. Arbitration may also be carried out by holding oral hearings, including using videoconferencing systems (VCS), or solely on the basis of documents submitted by the parties.

In the procedure for arbitration of internal disputes, the arbitral tribunal shall resolve the dispute in accordance with the norms of Russian law. If, in accordance with Russian law, the parties may choose foreign law as applicable to their legal relations, the dispute shall be resolved in accordance with the rules of law that the parties have indicated as applicable to the substance of the dispute. In the absence of such an indication, the dispute shall be resolved in accordance with the rules of substantive law determined by the arbitral tribunal in accordance with the conflict of laws rules that it considers applicable.

In the procedure of international commercial arbitration, the arbitral tribunal shall resolve the dispute in accordance with the rules of law that the parties have chosen as applicable to the substance of the dispute. In the absence of any indication by the parties, the arbitral tribunal shall apply the law determined in accordance with the conflict of laws rules that it considers applicable. At the same time, any indication of the law or legal system of any state shall be interpreted as directly referring to the substantive law of that state, and not to its conflict of laws rules.

Failing agreement by the parties, the arbitral tribunal may, on the application of any party, order such interim measures as it deems necessary and such measures shall be taken in order to:

1. maintain or restore the financial position of a party during the arbitration proceedings;
2. prevent actions that may cause substantial harm to the arbitration proceedings or to a party;
3. preserve assets from which the arbitral award may be enforced;
4. preserve evidence.

The arbitral award shall be made in writing and signed by the sole arbitrator or arbitrators constituting the panel of arbitrators, and shall state the reasons on which it is based, the date on which it is made and the place of arbitration.

Regardless of the type of dispute under consideration, whether domestic disputes or international commercial arbitration, arbitration shall be carried out on the basis of the principles of independence and impartiality of arbitrators, discretion, adversarial proceedings and equal treatment of the parties.

Legal services

1. Consulting on issues of applying to the Russian Arbitration Center
2. Preparing an arbitration clause for the text of an agreement
3. Preparing documents for applying to the RAC
4. Participation in cases and representation in the consideration of disputes in the RAC