Alternative Dispute Resolution

Alternative Dispute Resolution or ADR — «разрешение споров альтернативным способом» — refers to any means of settling disputes outside the state courts. ADR typically includes various forms of mediation and arbitration.

Russia is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (the New York Convention) and the European Convention on International Commercial Arbitration of 1961. The primary source of the Russian international arbitration law is the law «On International Commercial Arbitration», enacted on July 7, 1993, which is almost identical to the UNCITRAL Model Law.

Although there may be some hostility towards arbitration in Russian courts, an arbitral award, regardless of the seat of a tribunal, is usually enforced. The reasons to refuse recognition or enforcement of the arbitral award are those as established by the New York Convention and the UNCITRAL Model law.

The Federal law «On arbitration tribunals» which allowed resolution of domestic disputes by non-state arbitrators was enacted on July 24, 2002. The sad reality of Russian domestic arbitration is that too many tribunals are too sloppy about the impartiality principle. The courts, at least the commercial ones, seem to realise that and the decisions of such tribunals can be set aside with relative ease.

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