Jurisdiction(s):
United Kingdom

English Commercial Court stays enforcement under Arbitration Act 1996 s103(5) pending Dutch annulment; no security ordered (DTEK Krymenergo v Russian Federation)

Published on: 12 May 2025

Published by a LexisNexis Arbitration expert

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Article summary

JSC DTEK Krymenergo v The Russian Federation [2025] EWHC 1060 (Comm) What are the practical implications of this case?

This ruling offers significant direction on how section 103(5) of the Act operates, empowering the English courts to pause enforcement of a foreign arbitral award while set-aside proceedings are on foot at the seat at the time. It underscores that the court’s discretion is broad and will be exercised by reference to the particular facts, striking a measured balance that scrutinises both the strength of the annulment challenge and any prejudice to the claimant that delay might cause in the circumstances of the case. For those practising in arbitration, the court made clear that a stay is not a given. A party opposing enforcement must demonstrate—consistently with the approach identified by Gross J in IPCO v NNPC—that the annulment bid is bona fide rather than tactical in nature, carries at least a realistic prospect of success, and that any postponement will not unduly harm the claimant. Equally, award creditors should recognise that enforcement, even of substantial and politically charged awards, can be deferred where the court considers a pause appropriate here. Importantly, the court refused to order security as a condition...

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