🇷🇺 A Russian court has ruled that Russian counter-sanctions do not exempt a party from fulfilling its contractual obligations nor prevent the recognition and enforcement of foreign arbitral awards within Russia.

An arbitral creditor (a foreign company) sought the recognition and enforcement of an foreign arbitral award in Russia. The award was rendered under the Rules of the Baltic Court of Arbitration (the Republic of Latvia 🇱🇻). A party against whom the award was made (a Russian company) opposed enforcement and referred to the Russian Presidential Decrees on counter-sanction measures. The Russian company argued that the arbitral creditor originates from an 'unfriendly' country, and therefore, enforcement would be contrary to Russian public policy.

On December 28, 2024, the court rejected the objection raised by the Russian company. It held that Russian counter-sanctions measures neither relieve contractual obligations nor prevent the recognition and enforcement of foreign arbitral awards in Russia. Consequently, the court recognized and enforced the arbitral award (Case No А56-28968/2024). #Latvia

📌 The approach in case А56-28968/2024 aligns with the Hiperion case, in which the Supreme Court of Russia held that Russian counter-sanction measures do not constitute a barrier to the enforcement of an arbitral award (See the post dated December 18, 2024).

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