VIAC obtained a permit to administer Russian corporate disputes
On 4 July 2019 the Vienna International Arbitral Centre (VIAC) obtained permission from the Ministry of Justice of the Russian Federation to act as the Permanent Arbitration Institution (PAI) when handling international arbitration proceedings.
Since that date, the VIAC has been granted, inter alia, the following rights:
1) to administer corporate disputes arising from share purchase agreements and share pledge agreements relating to Russian companies regardless of the place of arbitration chosen by the parties;
2) to administer non-corporate commercial disputes with the seat of arbitration in Russia.
If the VIAC adopts the rules of corporate dispute resolution, it will also be able to handle other types of corporate disputes if the seat of arbitration is Russia.
Arbitration awards of the VIAC in the aforementioned disputes may be now recognised and enforced in Russia.
However, the VIAC still cannot handle Russian domestic disputes (i.e. disputes without a clear foreign element).
The VIAC is currently the only European arbitration centre recognised as a PAI by the Ministry of Justice of the Russian Federation. Previously, the same status was granted to the Hong Kong International Arbitration Centre (HKIAC).
Recognition on the territory of the Russian Federation of arbitration awards on corporate disputes issued by arbitration institutions which have not been given PAI status by the Ministry of Justice of the Russian Federation may be denied.