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Supreme Court: Russian commercial courts can adjudicate disputes with participation of foreign persons

In the opinion of Attorney, Head of Litigation and International Arbitration at ART DE LEX Artur Zurabian, the ruling of the Supreme Court has a rather questionable character. «If we proceed from the determination of the first instance on this case, the conditions regarding the procedure of dispute resolution and applicable law look as follows: the framework agreement No. 435/НАК-13 of 25 December 2013 that was the cause of action, the supplier rights whereunder transferred to the plaintiff in the present dispute, states that in case of inability to resolve any differences, disputes or conflicts by way of mutual negotiations, they are to be resolved judicially in compliance with the legislation of the Republic of Kazakhstan (clause 8.2. of the framework agreement); the applicable law under the agreement is material and procedural law of the Republic of Kazakhstan (clause 8.3. of the framework agreement). That is, there is an express provision that the applicable law under the agreement is material and procedural law of the Republic of Kazakhstan, and disputes are to be resolved judicially in compliance with the legislation of this state. From the aforementioned clauses of the agreement, a conclusion can be made that the parties had in mind state Kazakhstan courts, and such conclusion was sequentially made by three instances», – he presumes.

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