Resolve Contractual Disputes in Russia

In 2015, Russia substantially amended the contract law provisions of its Civil Code in order to provide for improved conditions for foreign investors doing business with local companies. However, no matter how good a law is there are situations in which litigation still appear. Whether a Russian company enters a dispute with a business partner, a supplier or a client, there are mechanisms that can help it resolve contractual conflicts. The main way of settling a contract litigation in Russia is with the help of the court system or through alternative dispute resolution methods, such as arbitration.

Our Russian attorneys can offer more information on the new Contract Law.

Settling a contractual dispute in Russian courts

The Russian court system is comprised of general jurisdiction and arbitrazh courts. General jurisdiction courts follow the rules of the Civil Procedure Code, while arbitrazh courts have their own set of regulations gathered under the Arbitrazh Procedure Code. The latter deal with commercial conflicts, such as contractual litigation. Arbitrazh courts are organised into first-instance regional arbitrazh courts, arbitrazh appellate courts and district (cassation) arbitrazh courts, just like courts of the civil judiciary.

Russia enabled commercial courts for quick resolution of contractual disputes, which is why a case tried by the arbitrazh court is normally decided within three months from the filing of the claim. Our litigation lawyers in Russia offer assistance in contractual disputes.

Limitation periods for contract litigation in Russia

As in all other litigation cases, commercial disputes also have certain limitation periods. The generally accepted period is three years, however there are also exceptions based on the type of contractual conflict. The following limitation timeframes apply in the case of contractual disputes in Russia:

• –          voidable transactions can be challenged within one year (claims based on void transactions within three years);
• –          conflicts related to sea freight contracts can be signaled within one year;
• –          conflicts between shareholders in a limited liability company can be signaled within two months;
• –          conflicts between shareholders of a joint stock company can be signaled within three months.

For complete information on the resolution of contractual disputes, do not hesitate to contact our law firm in Russia.