Jurisdiction(s):
United Kingdom

Russian court anti-suit injunction overrides Paris-seated ICC arbitration; sanctions permit unilateral Russian jurisdiction under Article 248.1 CPC RF (RusChemAlliance v Bayerische Landesbank)

Published on: 10 February 2025

Published by a LexisNexis Arbitration expert

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Article summary

RusChemAlliance LLC v Bayerische Landesbank

What are the practical implications of this case?

This ruling carries two notable practical consequences:

It closely echoes an earlier judgment of the same court in a claim against Unicredit Bank GmbH, thereby strengthening the Russian courts’ stance that any Russian party to an arbitration clause may unilaterally choose the jurisdiction of the Russian courts in any sanctions‑related dispute, on the basis that sanctions, by their nature, hinder a Russian party’s access to justice. In effect, more Russian parties are likely to bypass arbitration provisions and opt for Russian court proceedings, to the detriment of foreign counterparties.
It further confirms that Russian courts will readily set aside an arbitration agreement with a non‑Russian seat, will assume jurisdiction over disputes involving foreign parties, and will identify a rationale to apply Russian substantive law even where the parties have not selected it.

What was the background?

In 2021, the claimant, a Russian company, entered into two agreements with a consortium comprising Linde GmbH and OOO Renaissance Heavy Industries for the construction of...

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