Redress Abroad for Local Conflicts Could Be Limited

Russia's Supreme Arbitration Court has made a number of rulings that may limit the freedom of companies to regulate contracts under foreign law. The SAC's chairman suggested that the court could act to prevent judgments by foreign courts that interfere with Russian parties or that conflict with Russian legislation. Lawyers say foreign firms should not fear a wholesale move against the international arbitration of contracts but they should be ready for their business dealings in Russia to submit to Russian law. Varvara Knutova, Head of international arbitration and litigation projects at Pepeliaev Group, analyzed the cases that came before the Supreme Arbitration Court in 2012 and concluded that the SAC usually tried to find a compromise.