Artur Zurabyan | comments for the Kommersant: There’s no place like home court

Russian citizens and companies put under foreign sanctions may transfer any dispute with a foreign counterparty to an RF court, if the litigation abroad is not finished. This ability under the «Lugovoy’s Law»  was acknowledged by the Supreme Court of the RF (SC) in the dispute between Uraltransmash and the Polish PESA Bydgoszcz. The supreme instance explained its position stating that the very fact of imposing sanctions already has a negative effect on the reputation and hinders impartial trial of the case by a foreign court. In the lawyers’ opinion, the precedent-setting decision of the SC will have a negative impact on the relations of the Russian business with foreign counterparties. 

Artur Zurabyan, ART DE LEX Partner, in general supports the SC position, but believes that, apart from those who objectively cannot expect obtaining an impartial decision in a foreign state, the SC approach may be used by those who just have a weak position in the dispute. «As a result, on the one hand, the SC position protects the rights of persons that objectively suffered from sanctions. However, on the other hand, it opens loopholes for abuse by unfair  subjects that will get an opportunity to use delaying tactics and leave the foreign jurisdiction agreed in the contract»,— explains Mr Zurabyan.