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The new issue of ”Commercial Arbitration” is out

    Article dedicated to the 90th anniversary of ICAC/MKAS published in “ADR Centurion”, an e-journal of the Asian Institute of ADR

    The new issue (June 2022) of the e-journal “ADR Centurion”, published by the Asian Institute of ADR, contains an English language article dedicated to the 90th anniversary of the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation (English abbreviation: ICAC; Russian abbreviation: MKAS). The article – authored by the ICAC/MKAS Chairman Alexey A. Kostin and Dmitry Marenkov – describes the historical roots as well as the current status and structure of International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation. Furthermore, it offers an overview of the arbitration procedure under the ICAC/MKAS Arbitration Rules, including such issues as the appointment of arbitrators and the list of arbitrators, the language of arbitration, the place of arbitration, the duration of arbitration proceedings, the particularities of expedited arbitrations etc. In addition, the article draws the readers’ attention to the new edition of the Rules on Impartiality and Independence of Arbitrators which were enacted by the Order No. 110 of the Chamber of Commerce and Industry of the Russian Federation dated 30 September 2021 and entered into force on 1 November 2021. The authors refer to statistics according to which ICAC/MKAS has administered approximately 4,800 cases over the last ten years. During this period, the number of Asian parties remained relatively constant at 13 to 18%. However, as a consequence of the growing economic relationship between Russia and CIS countries on the one hand and Asian countries on the other hand, ICAC/MKAS expects to see more Asia-related cases in the future and looks forward to entering into new collaborations in Asia. Furthermore, the article mentions that ICAC/MKAS awards have been successfully recognised and enforced in various parts of the world, including Canada, China, Cyprus, Germany, Japan, Malaysia, the United Kingdom, the United States and Uzbekistan. The case law in Asia includes the following court decisions: -          High Court Malaya, Kuala Lumpur, in Open Type Joint Stock Company Efirnoye (“EFKO”) v. Alfa Trading Ltd., [2012] 1 CLJ 323; -          Higher People’s Court of Liaoning (China) in O’KEY Logistics LLC v. Guangdong South Fortune Import & Export Co. Ltd. (2013); -          Intermediate People's Court of Dongguan (China) in Kurgroup Distribution v. Guangdong Dongguan Animal Products Import and Export Co. Ltd. (2020). The authors conclude that the ICAC/MKAS enjoys a long tradition and is one of the oldest and well-known arbitration institutions in Eurasia. It offers quick and cost-effective dispute resolution with moderate fees. ICAC/MKAS possesses particular expertise in Russia/CIS law and business. It can also be a viable option for so-called East-West disputes between Asian and European parties. The article can be downloaded at the website of the Asian Institute of ADR under the following link: Center for Arbitration and Mediation of RF CCI

    The Chamber Hosted a Meeting With the Delegation of Bosnia and Herzegovina

    On August 3, 2022, a meeting was held in the Chamber with a delegation from Bosnia and Herzegovina headed by Ambassador Extraordinary and Plenipotentiary of Bosnia and Herzegovina to the Russian Federation Zeljko Samardzia. The delegation includes Director of the Bank for Investment and Development of the Republic of Srpska Drajen Vrhovac, Director of the Department for Attracting Foreign Investments of the Bank for Investment and Development of the Republic of Srpska Zoran Talic, Secretary of the Bank for Investment and Development of the Republic of Srpska Marija Milic, Secretary of the Embassy of Bosnia and Herzegovina in the Russian Federation Eldin Karabegovic.The delegation was received by Vladimir Gamza, member of the Board of the Chamber, Chairman of the Council for Financial, Industrial and Investment Policy, Kirill Baranov, Director of the Project and Investment Department, Dmitry Moskovkin, Senior Expert of the Department of External Relations.   Kirill Baranov spoke about the possibilities of the Chamber's system for promoting investment projects and noted that due to its presence in almost every region of Russia, the system of chambers of commerce and industry is able to provide effective assistance in the implementation of investment projects throughout the country.   Ambassador Extraordinary and Plenipotentiary of Bosnia and Herzegovina to the Russian Federation Zeljko Samardjija invited colleagues to take part in the investment conference scheduled for September in the Republika Srpska.   Director of the Investment and Development Bank of the Republic of Srpska Drajen Vrhovac spoke about the opportunities for foreign investors, which are guaranteed by the leadership of the republic. He added that the Bank is ready to participate in all stages of project implementation throughout Bosnia and Herzegovina.Zoran Talich, Director of the Department for Attracting Foreign Investments of the Investment and Development Bank of the Republic of Srpska, noted the most promising sectors for investment, including the woodworking industry, metallurgy, food production, and the telecommunications industry.

    The Chamber Celebrated Ilyin's Day on Ilyinka

    On August 2, on Ilyinka Street, Red Square and in the Congress Center of the Chamber of Commerce and Industry of the Russian Federation, celebrations were held dedicated to the holiday "Ilyin Day on Ilyinka Street" and the 92nd anniversary of the formation of the Airborne Forces.   The celebrations began with an early prayer service on Ilyinka Street and continued with a festive divine service in the Church of the Prophet Elijah in Kitai-Gorod. The service was led by Metropolitan of Kashira, Vicar of His Holiness Patriarch of Moscow and All Russia, Vladyka Feognost and Bishop of Slavonian John of the Serbian Orthodox Church. After the service, a procession from the church to the Execution Ground on Red Square took place, where a prayer service was performed to the holy Prophet of God Elijah.   Bishop Feognost and Acting Commander of the Airborne Forces Major General Alexei Naumets addressed the participants of the holiday, congratulations were read from the President of the Russian Federation Vladimir Putin, the Minister of Defense of the Russian Federation Sergei Shoigu and the Mayor of Moscow Sergei Sobyanin. Then, demonstration performances by paratroopers from the honor guard company of the Ryazan Guards Higher Airborne Command School and a solemn passage of paratroopers and students of military-patriotic clubs from a number of cities of the country took place on Red Square.   The celebration continued at the Congress Center of the Chamber of Commerce and Industry of the Russian Federation. The solemn meeting was opened by Father Andrei (Rechitsky), rector of the Church of the Prophet of God Elijah. He said that this wonderful holiday brought together believers, military personnel, veterans of the Airborne Forces and the business community. “The holiday took place thanks to the support of entrepreneurs, and the Russian Chamber of Commerce and Industry has become a good home, where we are so warmly received. I am sure that friendship and interaction will continue in the future, which will soon complete the long-awaited restoration of the Church of the Prophet Elijah in Kitai-Gorod,” Father Andrei emphasized.   In his welcoming speech, Maxim Fateev, Vice President of the Chamber of Commerce and Industry of the Russian Federation, first of all recalled that 20 years ago, it was thanks to the support of Yevgeny Primakov that the revival of the Church of the Prophet Elijah in Kitai-Gorod began. Entrepreneurs, representatives of the Russian Orthodox Church and valiant paratroopers feel good within its walls, as well as within the walls of the federal Chamber. “On behalf of the entire business community, the leadership of the Chamber of Commerce and Industry of the Russian Federation, I sincerely congratulate everyone on Ilyin's Day and the Day of the Airborne Troops,” Maxim Fateev said.   Press Service of the Chamber

    The Ural Chamber Asked the Government of Russia to Support International Truck Drivers

    The Ural Chamber of Commerce sent letters to Plenipotentiary Representative of the President of the Russian Federation in the Urals Federal District Vladimir Yakushev and Chairman of the Committee on Transport of the Chamber of Commerce and Industry of the Russian Federation Vitaly Efimov outlining the current situation in road transportation and proposals for its improvement. According to the Association of International Road Carriers, since February 2022, due to EU sanctions, about 3,100 Russian auto enterprises have been forced to stop working in the European direction.   The current market situation does not allow them to quickly reorient their vehicles for transportation to other countries or to the domestic market. As a result, the vast majority of road transport companies that previously carried out transportation to or from the European Union cannot carry out transportation activities in the same volumes, and as a result, pay wages to employees, make lease payments, pay taxes and other current payments. As of June 01, 2022, the loss of income of Russian international road carriers due to the suspension of their activities amounted to more than 9 billion rubles.   “In the absence of competition from Russian motor transport enterprises, European carriers have repeatedly raised tariffs for their services. As a result of the monopoly position, foreign transport companies have increased the cost of their services for the transportation of goods from Europe to Russia by 4-5 times. The ultra-high rates of foreign carriers have led to significant additional costs for Russian participants in foreign economic activity. Belarus promptly responded to this situation and banned the passage of foreign road carriers further than customs terminals, where goods are reloaded onto local transport. In the Russian Federation, no retaliatory measures have been taken against European Union road carriers so far,” Alexander Salautin, Chairman of the Transport Committee of the Ural Chamber of Commerce and Industry, explains the situation.   The Ural Chamber of Commerce and Industry, in its letter, expresses the opinion of road carriers on the advisability of taking retaliatory measures against carriers of the EU countries, similarly to the decision adopted in the Republic of Belarus, asks to consider the possibility of supporting this proposal and sending it to the Government of the Russian Federation.According to the latest data, the issue is under discussion in the Government of the Russian Federation and by October 1, a variant of its solution will be proposed.   PR-service of the Ural Chamber of Commerce

    The Chamber of Commerce of Tatarstan Greeted the Transport Forum in Turkmenistan

    On July 18, an international transport forum began its work in Ashgabat, the purpose of which is to discuss topical issues of the recovery of the industry after the pandemic and the adaptation of international transportation to new realities. Elena Agzamova, adviser to the chairman of the Chamber of Commerce and Industry of the Republic of Tatarstan, addressed the conference participants with a welcoming speech, saying that the republic's foreign economic relations are largely determined by long-standing traditions of interaction with Islamic states.   Elena Agzamova stressed that the Tatarstan Chamber of Commerce and Industry held an international forum of Russian chambers of commerce and industry at KazanSummit 2022. It was timed to coincide with the 30th anniversary of the Chamber of Commerce and Industry of Tatarstan and brought together heads of chambers of commerce and industry not only from Russia, but also from the CIS countries. Representatives of 47 chambers from more than 40 regions of Russia arrived. The Chamber of Commerce and Industry of Turkmenistan, with which partnerships have been established, also participated in it.   The adviser noted that the Chamber of Commerce and Industry of the Republic of Tatarstan and the Chamber of Commerce and Industry of Turkmenistan held a video conference on April 28 on the topic: "Expanding strategic partnership", where the Chairman of the Chamber of Commerce and Industry of Turkmenistan Dovletgeldi Redzhepov emphasized the need to develop export relations and the readiness of the Turkmen chamber to assist in matters arising from export-oriented enterprises. The Logistics Forum is planned to be held annually in order to expand cooperation between Turkmen transport enterprises and logistics organizations with foreign companies operating in the field of international freight and passenger transportation.   Press Service of the Chamber

    The City of Lipetsk Developing Cooperation with Tadjikistan

    On July 15, in the administration of the city of Lipetsk, a signing of a protocol of intent for cooperation between Lipetsk and the city of Khujand of the Republic of Tajikistan took place.   The event was attended by the head of the city of Lipetsk Evgenia Uvarkina, deputy chairman of Khujand Bakhtiyor Bokizoda, speaker of the city council Alexander Afanasiev, president of the Lipetsk Chamber of Commerce and Industry, director of the ANO "CEC of the Lipetsk Region" Anatoly Goltsov, first vice-president of the Lipetsk Chamber of Commerce and Industry, head of the Lipetsk export support center region Vasily Goltsov, representatives of state authorities, as well as entrepreneurs of the region.   - Khujand is the second largest city in Tajikistan. It has a long history, its own cultural and economic traditions. We are glad that our entrepreneurs will have the opportunity to get acquainted and establish business interaction with your city. There are already pioneers in the business environment of Lipetsk who do business with partners from Khujand. We gladly accept the offer to start cooperation and are ready to build economic ties together, develop export potential, - said Evgenia Uvarkina.   Bakhtiyor Bokizoda emphasized that for the leadership and business community of Khujand, Lipetsk entrepreneurs have long become almost family. “For two years now, a large delegation headed by Anatoly Goltsov has been coming to us, we communicate, exchange experiences. I am sure that the bridge of opportunities between our cities and countries will be built. Today and tomorrow we have a lot of work to do, we will establish business contacts and we will succeed,” said Bakhtiyor Bokizoda.   The delegation visited the Lipetsk Technopark. The acquaintance began with a visit to the Medsoft IT company. She is engaged in the creation of a comprehensive medical information system. Deputy Chairman of the city of Khujand Bakhtiyor Bokizoda became interested in technology and noted that one of the city's hospitals is currently being reconstructed in Khujand. Soon the specialists will begin the technical equipment of the institution. Therefore, they are ready to consider the products of the Lipetsk company for future cooperation. The guests visited the production facilities of other Technopark residents, including Soyuzrubinpolimer, Lets Trade, Lighting Products Plant, ETM-Production. The guests highly appreciated the innovative projects of the site and discussed the possibilities for further cooperation.   Press Service of the Chamber

    The Chamber Discussed the Problems of Import Substitution of Spare Parts

    On July 12, the President of the Chamber of Commerce and Industry of the Russian Federation Sergey Katyrin took part in the All-Russian Conference “On the problems associated with import substitution and parallel imports in the field of transport and transport infrastructure (on the example of road and rail transport, road infrastructure)”, held at Ilyinka, 6. The moderator of the conference, President of the Union of Transport Workers of Russia, Chairman of the Chamber Committee on Transport Vitaly Efimov, said that the transport component exists in all sectors of the Russian economy. There are now more than 6.5 million trucks and about 50 million cars in Russia. They are served by over 2.5 thousand dealer centers, more than 70 thousand service stations (SRT) of various formats. And all of them constantly require well-established channels for the supply of spare parts. After the introduction of sanctions by Western countries, it turned out that the transport complex is very dependent on the import of spare parts and components. In some areas, the share of imports exceeds 90%.   In this situation, Vitaly Efimov emphasized, the state should act systematically to solve the problem of shortage of auto parts in the domestic market. This also applies to parallel imports, and the expansion of its own production of spare parts and components, as well as the formation of an industry for the refurbishment of car components and assemblies. And here, first of all, it is necessary to understand which commodity niches will need to be covered by parallel imports, and in which areas it is possible to develop domestic production. It is reasonable to create a specialized information center that will deal with such issues.   Sergey Katyrin, who spoke at the conference, also put the work in the information sphere in the first place. According to him, the Chamber works closely with business councils, with its foreign representative offices, structures within the framework of the EAEU. And everywhere questions arise - "you formulate exactly what you need, what products you need, and then we will find partners for you." Thus, systematic work with information flows is needed. The second important topic, Sergei Katyrin emphasized, is a well-thought-out state policy in the field of import substitution. “Entrepreneurs come to us with questions about the prospects for the development of production. They are ready to invest, build enterprises, but the alarm constantly sounds - and if the situation changes, Western companies return to the Russian market again, then our investments may not pay off. And here the state needs to clearly define the conditions for the work of business in the real sector in the long term,” the President of the Chamber believes. The third topic outlined by Sergei Katyrin is a well-thought-out policy in the field of contacts in the foreign economic sphere. First there was a strong orientation to the West, now Russia has turned to the East and South. But even in these areas one should not focus on one country, it is important to develop contacts with a wide variety of countries. Finally, the fourth topic - confirmation of force majeure circumstances - is relevant both for the Chamber and for the transport. The fact is that the system for issuing confirmations of force majeure under external contracts works, but there are problems with internal contracts. So far, the legislation, for example, Article 401 of the Civil Code of the Russian Federation, does not allow to recognize the absence of any component or material on the Russian market as a force majeure circumstance. And the problem is precisely that some kind of gasket for the engine was imported, but a Russian company cannot transfer it along the chain. As a result, the entire production process stops. And there are an unmeasured number of such broken chains in the transport complex and other industries, - Sergey Katyrin concluded.   Press Service of the Chamber

    Vice President of the Chamber Congratulated the Workers of the Aluminum Industry

    Vladimir Padalko, Vice President of the Chamber of Commerce and Industry of the Russian Federation, wished the enterprises of the aluminum industry to maintain their leading positions in Russian industry, speaking at a meeting held at TASS on July 12.   The meeting was dedicated to the 90th anniversary of the start of aluminum production in Russia. The Vice President of the Chamber recalled that many plans are related to the development of industry, large infrastructure projects (housing and urban environment, roads and transport infrastructure, energy, aviation, etc.), in which aluminum products are in demand. “Therefore, it can be expected that the implementation of these and other strategic projects will contribute to the development of aluminum industry enterprises, the improvement of metal production technologies, the creation of new types of alloys, as well as an increase in economic and environmental efficiency,” he said.   Mr. Padalko wished the enterprises of the industry prosperity, and the Association of the Aluminum Industry - to continue to promote the interests of manufacturers in the same fruitful way to maintain its leading position. On May 14, 1932, the first industrial batch of metal was received at the Volkhov Aluminum Plant (Leningrad Oblast). Over the past 90 years, Russia has become one of the leading aluminum producing countries and now firmly occupies a leading position as a supplier of primary aluminum.   Press Service of the Chamber   Photos by Anton Novoderezhkin (TASS)

    In the Chamber the Time of the Exhibition Arabia-EXPO 2023 Announced

    The next Arabia-EXPO exhibition will be held in Egypt in March 2023. This was announced on July 8 by the chairman of the Russian-Arab Business Council Tatyana Gvilava.   “Mark this time in your calendars for a trip to the exhibition, which will bring together businessmen from all over the Middle East,” said Tatiana Gvilava.   She spoke at the "round table" "New prospects for business cooperation with the countries of the Middle East: the possibilities of the system of trade missions of the Russian Federation abroad", held at the Congress Center of the Chamber of Commerce and Industry of the Russian Federation.   The meeting was chaired by the Vice President of the Chamber, Vladimir Padalko, who introduced the trade representatives of the Russian Federation in the countries of the Middle East, who gathered at the round table and spoke in detail about the features of their host countries. Andrey Terekhin, Trade Representative of the Russian Federation in the United Arab Emirates, called the UAE a “window of opportunity” for expanding cooperation with the region. According to him, the Emirates is a "hub" (connection point) of cooperation with the countries of Asia and even Australia, a financial center, a free trade zone, which provides great opportunities for establishing ties. "The Emirates show loyalty to our country and refrained from condemning the Russian special operation when voting at the UN," he recalled. Among the Arab countries, the UAE has taken the first place in terms of trade with Arab countries, overtaking even Egypt.   Terekhin noted, the number of missions and delegations coming to the UAE from Russia has become an avalanche.   Trade Representative of the Russian Federation in Saudi Arabia Stanislav Yankovets noted a significant increase in trade turnover between Riyadh and the Russian Federation, emphasizing the key role in this of the visits of Saudi King Salman bin Abdulaziz al Saud to Moscow in 2017 and Russian President Vladimir Putin to Saudi Arabia in 2019. He noted that the main component of cooperation with Saudi Arabia is trade in food and agricultural products. The largest Russian grain companies are represented in the country, he noted. Another important component in foreign trade with Saudi Arabia Yankovets called cooperation in the field of information technology - IT. According to him, Russian pharmaceutical companies are also active in this market, creating joint ventures. “In Saudi Arabia, a course has been taken to localize all the best samples under the auspices of the Vision 2030 strategic program,” he said. There is a great interest in the educational sphere and there is an increased interest in the Russian experience in this regard.   Answering the questions of the round table participants, which was broadcast to the Russian regions, Stanislav Yankovets advised those wishing to enter the markets of the Middle East to prepare proposals in Russian and English and hold meetings via videoconferences to explain their proposals. Andrey Terekhin noted that when compiling requests from our entities to trade missions, it is necessary to understand the structure of the UAE market. For example, we often forget that the UAE is the largest aluminum producer, and they are offered to supply aluminum from Russia. He noted that pharmaceutical products, everything related to innovation meets with a bang! Summing up the results of the "round table", Vice President of the Chamber Vladimir Padalko expressed hope that the exchange of information that had taken place would be usefully continued in practice. Press Service of the Chamber