28 September 2010
International Oil and Gas Arbitration in Russia/CIS Countries
Evgeny Raschevsky and Olga Vishnevskaya authored the Russian chapter for the International Commercial Arbitration Practice: 21st Century Perspectives. This collective work, co-edited by Horacio A. Grigera Naón and Paul E. Mason, captures the development of ICA from different perspectives and uniquely brings together the ideas, suggestions and perspectives of in-house counsel as the most important users of ICA, along with outside counsel, arbitrators themselves, and major arbitration organizations who all help provide the service.

The scope and importance of International Commercial Arbitration (ICA) has expanded exponentially in the last few decades and has become the natural and logical method to resolve international business and economic disputes. This collective work captures the development of ICA from different perspectives and uniquely brings together the ideas, suggestions and perspectives of in-house counsel as the most important users of ICA, along with outside counsel, arbitrators themselves, and major arbitration organizations who all help provide the service. Most, if not all, of the contributing authors have served as counsel or arbitrator in arbitrations and have further contributed, through their writings, teachings or activities in arbitral and other institutions, to the evolution of ICA covered by this collective work. Accordingly, International Commercial Arbitration Practice: 21st Century Perspectives is an indispensable tool for the reader--practitioner, arbitrator, academic, magistrate or student--not only to obtain useful general information on ICA practice today but to gain insightful views as to the influence of this institution in the settlement of international commercial disputes in specific economic areas, industries and commercial activities. International Commercial Arbitration Practice: 21st Century Perspectives brings the process alive and provides the reader with a useful practice guide whether he or she represents a client participating in an international commercial arbitration, is in-house counsel for a company considering arbitration as a possible method of dispute resolution, or is an arbitrator with cases at hand.

The book is organized by Parts which contain thematically related chapters. Part I deals with an overview of key elements in ICA practice and includes chapters on how arbitration is conducted under different legal systems such as common law, civil law, and shari'a law, as well as a chapter on cultural issues in international arbitration. Part II contains geographical regional overviews covering most regions of the world (Western Europe, Russia/NIS countries, Asia (particularly China & Hong Kong and the Indian Subcontinent), Middle East & North Africa, Latin America, the U.S., Canada, and Australia & New Zealand. Part III includes individual industry sector views of how ICA is conducted in individual industry and business sectors such as oil & gas, LNG, mining, construction, telecommunications, satellite communications, intellectual property, sports, banking & finance, insurance & reinsurance, securities, shipping & maritime, corporate shareholder and bankruptcy settings. These chapters are highly instructive because many of them were written by current or former in-house counsel in these industries or, in some cases, by outside counsel who focus on these industries. Part IV of the book describes recent trends at several major global commercial arbitration institutions such as the ICC, ICDR, LCIA, CPR and WIPO. Part V deals with questions of how technology has been changing ICA practice in recent years, including chapters relating to the use of technology by some major arbitral institutions, videoconferencing in ICA, and online arbitration of internet domain name and e-commerce cases.

Abstract of the Russian Chapter:

“General View on International Oil and Gas Arbitration in Russia/CIS Countries

The recent practice of settling disputes arising out of complex cross-border agreements involving major Russian/CIS oil and gas market players shows that international commercial arbitration is a widespread and recognized technique for effective disputes resolution.

The most preferred venues for oil and gas industry dispute resolution are leading arbitration centers and ad hoc arbitrations in Moscow, Stockholm, London and Paris. Russian legislation also provides an additional settlement arbitration mechanism for disputes between Russian/CIS and internal market players. Domestic disputes may be referred to arbitral tribunals established by major Russian oil and gas companies (Gazprom, Transneft, Lukoil). These arbitral tribunals are recognized as effective and qualified institutions to consider and resolve a significant number of internal market disputes in the sector.

The important feature of oil and gas sector disputes in Russia and other CIS countries is that it is often necessary to “divide” pure commercial matters, which are arbitrable, from those with heavy involvement of the state’s public interests in hydrocarbon production. The consequence of the latter is nonarbitrability of a number of disputes arising out of contracts involving oil and gas companies. Turning a blind eye to this feature may cause problems with recognition and enforcement of the arbitral awards in Russia and other CIS countries. However, in most cases the arbitral awards in the oil and gas sector are recognized and enforced by Russian courts on the general grounds that arbitral awards of all kinds of disputes should be enforced.”

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The International Commercial Arbitration Practice: 21st Century Perspectives (co- eds., Horacio A. Grigera Naón and Paul E. Mason) is online and available to subscribers of lexis.com. For subscribers, it can be found at the following location: Legal > Area of Law - By Topic > International Arbitration > Handbooks & Treatises > International Commercial Arbitration Practice: 21st Century Perspectives. It is also available for print purchase through our bookstore (click here to view the bookstore entry).