Russian Businesses Distrustful of Local Laws
By Ira Iosebashvili
Russian companies have little faith in the country’s legal system and believe that only 10% of Russia’s laws are useful for business, according to a study by a top Moscow law firm.
Egorov Puginsky Afanasiev and Partners, which conducted the study, said that Russian companies prefer using international corporate law when conducting their business. The Russian legal code generates high risk of deals getting annulled, the study said. It also offers little effective defense of parties’ interests if agreements are violated.
Russian companies would rather end up having their cases tried in foreign courts, the study found.
(This story has been posted on The Wall Street Journal Online's Emerging Europe blog at http://blogs.wsj.com/emergingeurope)