Russian Anti-Suit Injunctions: Impediments to International Commercial Arbitration

The recent amendment to the Russian Commercial Procedural Code raises some difficult issues for practitioners dealing with Russian companies in the context of seeking redress in international commercial arbitration or through commercial litigation.

This amendment to the Russian Arbitrazh (i.e., Commercial) Procedure Code (Federal Law no.171-FZ) was aimed at protecting the rights of natural persons and legal entities in connection with sanctions imposed by foreign countries. The amendment (new articles 248.1 and 248.2 to the Arbitrazh Procedure Code) came into force on 19 June 2020 granting exclusive Russian jurisdiction over disputes: where one of parties is a person or legal entity placed under sanctions by a foreign state, state union or institution, or disputes between Russian or foreign entities that are based on or concern foreign sanctions implemented against Russian citizens or Russian legal entities.