Domestic companies are faced with difficulties while dealing with European arbitrations. Though arbitration institutions are non-commercial, they are private and their activity comes within the purview of the local legislation. Thus arbitrage institutions registered in EU fall within the ambit of sanctions. The sanctions affected the interests of the key corporations for the Russian economy. The deals with these companies were prohibited for the citizens of countries taken sanctions. The current situation made the Russian business to focus on Asian arbitration centers.
Vladimir Khvalei, the Chairman of Russian Arbitration Association board, stated that recently some of the European Arbitration decisions concerning cases where one of the parties was a Russian company were significantly dragged along or delayed. In some cases international arbitrators refused to handle legal matters of the companies added to the sanction list.
The last statistics concerning references to arbitrations show that in the context of sanctions the state companies more often refer to Asian arbitration centers, which are ready for cooperation with Russia. Thus the start-up Dubai international arbitration center handles a big amount of matters on regulation of disputes with Russian companies.
The representatives of the Hong Kong arbitration center note the increase of references on the part of the Russian companies. Major state companies, trading on Hong Kong Exchange, work with the Hong Kong arbitration center. Hong Kong boasts the differences in its legislation in comparison with the English one. However, the differences are minimal.
The increases in references are marked by the other Asian arbitration centers. Akira Kawamura, the President of International bar association, suggested creating a new regional arbitration center for dealing with Russian and Japanese companies.
Among other advantages of Asian centers are: the possibility of urgent trial, disputes resolution within 6 months, great experience and judges’ proficiency, as well as political apathy while decision-making. At the same time each Asian arbitration center has several advantages and they all extensively compete against each other.
The legislation reform in the field of arbitration in Russia has been passing along for 2 years. The particular part of the new commercial arbitration law is about the role of arbitration institutions and arbitration activity regulations. In particular the new law limits the possibility of arbitration institution establishment. The changes are necessary due to the fact that the previous legislation gave the possibility for any legal entity to create its own dispute resolution institution. It led to introduction of the surplus of arbitration institutions and consequently to arbitration abuses.
The World Bank has positively reconsidered the fall forecast of the Russian economy in the current year: the Russian GDP will decrease not by 3,8%, as it was announced earlier, but by 2,7%. In addition, in 2016 the Russian economy will again show positive growth rates of 0,7%.
The stabilization of global oil prices will let Russia to avoid sharp decrease of the GDP value in the current year; all this will give support to the rubble and lead to gradual weakening of high inflation processes.
According to the World Bank’s experts, the average price for the barrel of Brent oil in 2015 will be $58, and $63,6 in 2016. Such price level will let the Bank of Russia to pursue softer monetary-and-credit policy, which will promote reduction of borrowed funds cost (the key interest rate of the Central bank since 16.06.15 is 11,5%) and increasing the lending volumes of enterprises and households.
The negative influence on economy has consumption, which is significantly decreased next to real decrease in wages for the first time since the last crisis in 2008-2009; and also significantly declined investment activity. The ruble devaluation led to import reduction, which is partly compensated by entry of local manufacturers into domestic market and Government policy of import substitution.
The World Bank’s positive assessment of GDP growth was published just before publication of the clarified assessment of GDP decline in the first quarter of 2015 by Rosstat, the GDP amounted to -2,2% in annual expression, which is worse than previous preliminary data (-1,9%). According to the Central Bank data, in April the Russian economy decreased by 4,2%. Thus, to speak about the beginning of economy "recovery" is still prematurely. The exacerbation of Ukraine situation and the threat of new sanctions from EU and the USA might slow down the process of crisis recovery.