🇷🇺 🇱🇺 𝐂𝐨𝐮𝐧𝐬𝐞𝐥 𝐖𝐢𝐭𝐡𝐝𝐫𝐚𝐰𝐚𝐥 𝐚𝐧𝐝 𝐏𝐨𝐬𝐬𝐢𝐛𝐥𝐞 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 𝐨𝐟 𝐚𝐧 "𝐔𝐧𝐟𝐫𝐢𝐞𝐧𝐝𝐥𝐲 𝐂𝐨𝐮𝐧𝐭𝐫𝐲" 𝐚𝐬 𝐆𝐫𝐨𝐮𝐧𝐝𝐬 𝐟𝐨𝐫 𝐑𝐞𝐟𝐮𝐬𝐚𝐥 𝐨𝐟 𝐚 𝐋𝐮𝐱𝐞𝐦𝐛𝐨𝐮𝐫𝐠-𝐒𝐞𝐚𝐭𝐞𝐝 𝐀𝐰𝐚𝐫𝐝 𝐢𝐧 𝐑𝐮𝐬𝐬𝐢𝐚

In Case No. А60-40234/2025, three Italian 🇮🇹 individuals sought recognition and enforcement of an arbitral award rendered in their favour in arbitration under the auspices of the Luxembourg 🇱🇺 Chamber of Commerce (la Chambre de Commerce du Luxembourg) against a Russian 🇷🇺 individual, a Russian 🇷🇺 legal entity, and a Cypriot 🇨🇾 legal entity.

The Arbitrazh Court of the Sverdlovsk Region refused recognition and enforcement of the award in Russia. Some of the court’s reasons are rather interesting.

1. As follows from the court’s decision, during the arbitral proceedings the legal counsel for the Russian individual, the respondent, withdrew from providing legal services to him.

The respondent asked for an extension of the time to submit its submission. The arbitral tribunal refused the motion.

Taking into account that the arbitrators were from Belgium and Luxembourg, the court held that (a) there was a lack of equal treatment of the parties, and (b) a lack of impartiality and objectivity on the part of the arbitrators.

2. Taking into account that one of the respondents — the Russian legal entity — has a special status (a public-interest enterprise), the court concluded that the execution of the arbitral award and the possible payment by this Russian legal entity could be considered as financing an "unfriendly country."

The court decision dated November 12, 2025, could be appealed.

🔗 The case can be found at the link.

ProArbitration.Ru