Resolution of commercial disputes at the ICAC under the RF CCI

Resolution of commercial disputes at the ICAC under the RF CCI

On June 14, 2018, lawyers from the Stepanov and Aksyuk Law Office took part in the All-Russian Conference “International Commercial Arbitration: Current Issues in Dispute Resolution and Enforcement of Decisions” held by the Chamber of Commerce and Industry of the Russian Federation and the International Commercial Arbitration Court at the Russian Chamber of Commerce and Industry.

In this regard, we consider it necessary to bring to your attention the information received at the event about the ICAC and its advantages.

Let us recall that the ICAC considers disputes both between Russian companies and between a Russian and a foreign company, provided that the agreement between them provides for a clause on the resolution of disputes in international arbitration.

The obvious advantages of the ICAC over the state arbitration court are:

- consideration of disputes in the ICAC is carried out confidentially;

- the parties have the right to themselves form the composition of the arbitrators considering the case;

- the time frame for consideration of a case in the ICAC is much more expeditious than in state courts;

- finality of the ICAC decision – it is not subject to appeal or cassation appeal.

Advantages of the ICAC over foreign arbitrations:
- record keeping at the ICAC is conducted in the language determined by the parties;
- as the venue for the ICAC arbitration at the Chamber of Commerce and Industry, the parties have the right to choose a separate division of the Chamber of Commerce and Industry on the territory of the Russian Federation, including the Chamber of Commerce and Industry of the Rostov Region;
- lower cost of proceedings in the ICAC compared to foreign arbitrations. As an example, we provide you with the prices for arbitration fees in the Rostov branch of the ICAC at the Chamber of Commerce and Industry and other international arbitrations:

  • ICAC at the RF Chamber of Commerce and Industry - the price of the arbitration fee for a claim price of up to 10,000 USD will be 3,000 USD, from 10,001 to 50,000 USD - from 3,000 to 8,000 USD.
  • The London Court of International Arbitration (LCIA) - registration fee - 1,750 pounds sterling, the proceedings themselves are carried out at hourly arbitration rates (the last known rate of an arbitrator per hour exceeded 300 pounds sterling).
  • International Chamber of Commerce (ICC) - the cost of arbitration with a claim value of up to 50,000 USD and the appointment of one arbitrator will average from 9,000 to 11,000 USD.
  • The Arbitration Institute of the Stockholm Chamber of Commerce (SCC) - the cost of arbitration with a claim value of up to 40,000 EUR and the appointment of one arbitrator will average from 10,000 to 14,000 EUR.
  • Swiss Chamber Arbitration Institution (SCAI) - the cost of arbitration with a claim value of up to 50,000 USD and the appointment of one arbitrator will average up to 10,600 USD.

The cost of initiating arbitration involving a panel of three or more arbitrators in the above-mentioned foreign institutions increases on average by 1.5-2 times.

In addition, in accordance with the statistical data presented at the Conference by the ICAC arbitrators at the RF Chamber of Commerce and Industry, more than half of all claims submitted for consideration to the ICAC were satisfied.

 

Anastasia Zaitseva,
Lawyer in the maritime practice of Stepanov and Aksyuk Law Firm, associated office of GRATA International

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