A foreign company before a Russian court: suing a debtor, defending a claim, enforcing judgments

What is happening

An Ecuadorian shrimp exporter has made several deliveries to a Moscow distributor. The buyer has not paid for the last three and has stopped answering. Under the contract, disputes go to the commercial court at the defendant's location.

A Brazilian company has received papers from a Russian commercial court: a Russian customer is suing to recover an advance payment. The time for a response is running, while the power of attorney and the company's status documents still have to be executed in Brazil.

An Argentine company has won an arbitration abroad against a Russian buyer. The award has not been complied with, and the debtor's assets are in Russia.

What the law says

• The jurisdiction of Russian commercial (arbitrazh) courts in cases involving foreign persons is governed by Chapter 32 of the Commercial Procedure Code (APC).
• A company's documents from the region are apostilled under the 1961 Hague Convention, to which almost all countries of the region are party, or consularly legalised, and translated into Russian. A notary certifies the accuracy of the translation or the translator's signature (Article 81 of the Fundamentals of Russian Legislation on Notaries No. 4462-1 of 11 February 1993).
• The authority of the company's representative in court is confirmed by a power of attorney (Article 185 of the Civil Code). A power of attorney from a foreign company is signed and notarised in its home country and then apostilled.
• If the parties have so agreed, the dispute is heard not by a state court but by international commercial arbitration, including the ICAC (Russian Federation Law No. 5338-1 of 7 July 1993 on International Commercial Arbitration).
• Foreign court judgments and foreign arbitral awards are recognised and enforced in Russia under Chapter 31 of the APC. For arbitral awards, the basis is the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, to which Russia is a party.
• If the creditor company is controlled by persons from states on the list approved by Russian Government Order No. 430-r of 5 March 2022, the Russian debtor may discharge monetary obligations through a type C account under Presidential Decree No. 95 of 5 March 2022. This has to be taken into account before filing a claim.

What we do

• We assess the prospects: the contract, correspondence, evidence of delivery and payment, the dispute resolution clause, time limits, the debtor's assets.
• We send a letter of claim where the contract or the law requires a pre-trial procedure, and negotiate voluntary payment.
• We tell you which documents to execute in your country: a commercial register extract, a power of attorney, proof of the signatory's authority; in Russia we arrange notarised translation.
• We prepare the statement of claim or the defence and conduct the case at first instance and on appeal.
• We represent the company at the ICAC where the contract refers disputes there.
• We apply for interim measures if there is a risk that the debtor will move its assets.
• We seek recognition and enforcement in Russia of a foreign judgment or arbitral award and support the enforcement proceedings.
• We report to the company regularly in Spanish or English: we provide for work in Spanish, with an interpreter where needed.

What we will need from you

• The contract, annexes, specifications and correspondence with the Russian party.
• Documents on delivery or services and on payment.
• A commercial register extract and a power of attorney for our lawyers, executed following our instructions.
• Information on the company's ownership if any owners are from states on the unfriendly list.
• For enforcement: the foreign judgment or award and proof that the debtor was notified.