As follows from the court’s conclusions stated in the Resolution of the Central District Arbitration Court dated February 27, 2023 in case No. A14-13590/2022, anti-crisis measures related to obligations to foreign persons are part of the public order of the Russian Federation.
The court noted that according to Part 4 of Article 238 of the Arbitration Procedure Code of the Russian Federation, when considering a case for issuing an enforcement order for the compulsory execution of an arbitration court decision, the arbitration court at a court hearing establishes the presence or absence of grounds for refusing to issue an enforcement order for the compulsory execution of an arbitration court decision, provided for by Article 239 of the Arbitration Procedure Code of the Russian Federation. The first instance court, when considering the company’s application, regardless of whether there were any objections in this regard from the society, did not verify whether the enforcement of the decision of the International Commercial Arbitration Court to recover funds from the company in favor of the applicant would contradict the public order of the Russian Federation, taking into account the current requirements of the legislation regarding the performance of obligations to foreign counterparties under the jurisdiction of unfriendly countries of the Russian Federation on the date of the court ruling. In accordance with paragraph 2 of Part 4 of Article 239 of the Arbitration Procedure Code of the Russian Federation, the enforcement order for the compulsory execution of an arbitration court decision is not subject to issuance by the arbitration court if the implementation of this decision would contradict the public order of the Russian Federation.
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Author
Valentin Orlov
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