Before 2022, Western arbitration centers were top choice for domestic businesses: the International Chamber of Commerce in Paris (ICC), the London Court of International Arbitration (LCIA), and the Arbitration Institute of the Stockholm Chamber of Commerce (SCC). These venues had an impeccable reputation, and their decisions were easily enforced worldwide. Large Russian corporations, energy and metallurgical giants referred their disputes for resolution there for decades. However, according to Stanislav, the focus has shifted from west to east, and in today’s conditions, choosing the Hong Kong International Arbitration Centre (HKIAC) appears more practicable:

This center is among the most respected in the world, has the status of a permanent arbitration institution in Russia, and is well suited for working with sanctioned entities. The China International Economic and Trade Arbitration Commission (CIETAC) can also be considered, although it is less open-minded and popular abroad than HKIAC. However, referring disputes to it for resolution will be quite inexpensive….SIAC [also] remains a convenient place to consider disputes involving Russian parties, despite the targeted sanctions imposed by Singapore.

The demand for arbitration from both Russian companies and their counterparties is still in place. In these conditions, businesses and their advisors have to find solutions and look at other jurisdictions. And there are solutions.

If resolving disputes by international arbitration was previously a requirement of Western counterparties, now Russian companies that shifted their focus on the Eastern region, face similar requests from their Asian colleagues. Therefore, arbitration will continue to play an important role for disputes involving businesses from Russia, regardless of the country of origin of its counterparty.

Stanislav is also convinced that the future of arbitration is inextricably linked to technological transformation.

As part of the global trend towards digitalization, the process will become more technology-savvy: hearings will increasingly be held online, and new virtual platforms for exchanging procedural documents will appear.