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International Arbitration Controversy: Belarusian Businesses Gaining Proficiency in Russian Arbitration Courts

Belarusian corporations actively participate in global commercial arbitration through the Russian Chamber of Commerce and Industry. Last year in 2024, these Belarusian entities were involved in 29 conflicts connected to construction, supply, and leasing agreements.

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Russian arbitration at TPPS sees increased involvement of Belarusian businesses in commercial...
Russian arbitration at TPPS sees increased involvement of Belarusian businesses in commercial disputes, particularly in sectors like construction, supplies, and rentals. As mentioned by Dmitry Podshibyakin, Director of the Arbitration and Mediation Center of the TPPS of Russia, there were 29 such disputes involving Belarusian companies in 2024, as reported to Myfin.by.

International Arbitration Controversy: Belarusian Businesses Gaining Proficiency in Russian Arbitration Courts

Business Battle Cry

Belarusian entrepreneurs have been aggressively engaging in international commercial arbitration managed by the Chamber of Commerce and Industry of Russia. In the year 2024 alone, these Belarusian businesses found themselves embroiled in 29 arguments concerning construction, supply, and leasing contracts. This information comes straight from Dmitry Podshibyakin, Director of the Arbitration and Mediation Center of the Chamber of Commerce and Industry of Russia, as reported by Myfin.by.

A new breed of disagreements has surfaced within the realms of intellectual property and nuclear energy. As practice has shown, businesses commonly preserve relationships with their counterparties even after disputes have been resolved.

  • "Disputes stemming from the impact of sanctions primarily involve the finance sector. These confrontations mainly occur when partners are unable to make payments, for example, in specific currencies, or when there's a chance of secondary sanctions. Many companies argue these scenarios as force majeure events. Third-party courts analyze whether these instances indeed qualify as force majeure," the expert explained.

When asked why Belarusian companies opt for Russia's Chamber of Commerce and Industry arbitration, the lawyer responds that in every case, the parties decide the level of trust they have in Russian or Belarusian courts. Feedback indicates that disputes are adjudicated impartially regardless of the chosen court.

Court records show that from 2022 to 2024, not a single full refusal to acknowledge the claims of Belarusian companies has taken place.

The expert was quick to recall that Belarusian arbitrators are included in the international arbitration panel at the Chamber of Commerce and Industry of Russia.

Interestingly, the number of cases related to sanctions within international commercial arbitration has been decreasing because the number of disputes involving European companies has been dwindling. The share of such cases currently stands at 28% within the international commercial arbitration court of the Chamber of Commerce and Industry. These disputes emerge from contracts signed prior to 2022, concerning payment transfers, goods delivery, among other matters.

On the other hand, the number of cases involving participants from the Asia-Pacific region is on the rise. However, these cases relate to different reasons.

Law Magazine

Guest Author: Oksana Kuznetsova

Enrichment Data:

Key Points:

  • Belarusian businesses are turning to international commercial arbitration at the Chamber of Commerce and Industry of Russia due to its expertise in handling foreign economic contracts and advantages that arbitration brings over traditional courts.
  • The low number of disputes involving European companies is responsible for the decrease in sanctions-related cases in arbitration.
  • Collaborative events between Belarusian legal bodies and the Chamber of Arbitrators ensure continuous legal education, which encourages Belarusian enterprises to use these mechanisms.
  • Belarus serves as a friendly arbitration venue for disputes within regional economic communities like the Eurasian Economic Union (EAEU), CIS, SCO, and BRICS. This reflects a broader strategic alignment and practical convenience for resolving regional commercial disputes involving Belarusian parties.

Sources:

[1] Chamber of Commerce and Industry of Russia

[2] Belarusian Republican Union of Lawyers

[3] Ministry of Justice of the Republic of Belarus

  • Within the context of the Increase in international commercial arbitration, disputes related to the finance sector within Belarusian businesses are primarily centered around challenges in making payments, particularly in specific currencies, or the potential threat of secondary sanctions, which are often argued as force majeure events.
  • Belarusian businesses choose the arbitration services of the Chamber of Commerce and Industry of Russia due to its expertise in handling foreign economic contracts and the advantages that arbitration offers over traditional courts, as highlighted in the Law Magazine article by guest author Oksana Kuznetsova.

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