Expanding arbitration capabilities: a key institution gains accreditation in Russia

A leading international arbitration centre based in Dubai (DIAC) has been officially accredited by the Russian Ministry of Justice as a permanent arbitral institution. This opens new prospects for DIAC, an arbitration centre widely recognised within the Russian business community.

Practical significance

Russian courts will no longer require parties to prove DIAC’s status as the permanent arbitral institution. This will simplify the enforcement in Russia of arbitral awards rendered under DIAC’s auspices abroad.

The new status also expands the range of disputes DIAC can administer in Russia:

• Arbitration of corporate disputes: DIAC will be able to administer certain corporate disputes, for example, those concerning ownership rights to shares and stakes in the charter capital of Russian companies. To broaden the scope of corporate disputes it can administer, the institution will need to develop specialised rules.
• Support for ad hoc arbitration: DIAC will be able to support arbitration proceedings conducted in Russia outside of permanent institutions.
• Procurement disputes: DIAC will be able to administer proceedings arising from the procurement activities of certain organisations, including those with state participation.

Important

Even with its new status, DIAC will only be able to handle international commercial disputes. To administer cases where all parties are Russian residents, the establishment of a branch in Russia is required.

* In Russian