{"id":389218,"date":"2026-07-03T10:30:43","date_gmt":"2026-07-03T05:00:43","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=389218"},"modified":"2026-07-03T10:09:58","modified_gmt":"2026-07-03T04:39:58","slug":"russias-lugovoy-law-meets-indian-enforcement-bombay-high-court-draws-the-line","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/07\/03\/russias-lugovoy-law-meets-indian-enforcement-bombay-high-court-draws-the-line\/","title":{"rendered":"Russia’s Lugovoy Law Meets Indian Enforcement: Bombay High Court Draws the Line"},"content":{"rendered":"
\n

The enforceability of Russian Court judgments in India has attracted increasing attention following the enactment of Article 248.1 of the Russian Commercial Procedure Code (Russian Arbitrazh Code). Article 248.1 purports to confer exclusive jurisdiction on Russian Courts in sanctions-related disputes, including where parties have agreed to foreign courts or foreign-seated arbitration.<\/p>\n

On 8 June 2026, the Bombay High Court (BHC), in LLC EuroChem North-West-2<\/span> v. Tecnimont S.p.A.<\/span>1<\/sup><\/a>, delivered perhaps the first Indian judgment to substantively engage with Article 248.1. EuroChem sought to enforce against Tecnimont a Moscow Commercial Court judgment of approximately RUB 171 billion (USD 1.86 billion).<\/p>\n

Indian framework<\/p>\n

The Indian framework for enforcement of foreign judgments is found principally in Sections 13<\/a> and 14<\/a><\/span>, Civil Procedure Code, 1908<\/a> (CPC). Russia is not a “reciprocating territory” under Section 44-A<\/a> CPC<\/a>. A Russian judgment, therefore, cannot be directly executed; the decree-holder must file a fresh suit before an Indian Court, relying on the Russian judgment as conclusive evidence of the underlying debt.<\/p>\n

Under Section 13<\/a>, a foreign judgment is conclusive between the parties except where, among other things, it has not been pronounced by a court of competent jurisdiction. Section 14<\/a> creates a rebuttable presumption of competence, assessed in the “international sense” and not merely by reference to the foreign court’s own domestic law.<\/p>\n

Article 248.1 and the international response<\/p>\n

Article 248.1 confers exclusive jurisdiction on Russian Commercial Courts in disputes involving persons subject to foreign restrictive measures, and where such measures form the basis of the dispute. Article 248.1(4) also applies where an arbitration or foreign jurisdiction agreement is alleged to be unenforceable because sanctions have created obstacles to access to justice.<\/p>\n

In effect, the provision empowers Russian Courts to override pre-existing arbitration and jurisdiction clauses, including clauses providing for International Chamber of Commerce (ICC), London Court of International Arbitration (LCIA) or other foreign-seated arbitration. Courts in the United Kingdom, the United States and Hong Kong have consistently rejected the defence that Article 248.1 confers jurisdiction on Russian Courts where parties have consciously elected to resolve disputes in foreign courts or foreign-seated arbitrations, and have granted anti-suit injunctions against proceedings in Russia. In Google LLC<\/span> v. Nao Tsargrad Media<\/span>,2<\/sup><\/a> the English High Court held that nothing in Article 248.1 prevented a party from commencing proceedings in England in accordance with a jurisdiction clause.<\/p>\n

The EuroChem dispute<\/p>\n

The dispute arose from engineering contracts executed in 2020 for construction of a fertiliser complex in Russia. The contracts between EuroChem, Tecnimont and MT Russia (Tecnimont’s Russian subsidiary) contained ICC arbitration clauses with a London seat, English governing law and an express waiver of other courts’ jurisdiction.<\/p>\n

Following European Union (EU) sanctions, Tecnimont and Maire Tecnimont (MT) Russia suspended performance, and EuroChem terminated the contracts in 2022. EuroChem participated in the ICC arbitration for approximately three years, filing counterclaims without challenging the Tribunal’s jurisdiction. In September 2025, while still participating in that arbitration, EuroChem commenced proceedings before the Moscow Commercial Court under Article 248.1. On 5 December 2025, the Moscow Commercial Court partly allowed EuroChem’s claim. EuroChem then approached the BHC seeking a Mareva-style injunction restraining Tecnimont from disposing of assets in India.<\/p>\n

The BHC’s decision<\/p>\n

The BHC dismissed the interim application. Firstly<\/span>, it held that the Moscow Commercial Court’s competence was prima facie<\/span> doubtful. Given the ICC arbitration agreements, London seat, English governing law, express waiver of other courts’ jurisdiction and EuroChem’s three-year participation in the arbitration, the competence of the Moscow Commercial Court could not be presumed at the pre-trial stage.<\/p>\n

Secondly<\/span>, the BHC did not treat Article 248.1 as resolving the jurisdictional question. It noted that the provision opens with “Unless otherwise provided by… an agreement of the parties” and that Article 248.1(4) applies only where the relevant agreement is unenforceable due to restrictive measures creating obstacles to access to justice. The BHC therefore assessed the provision independently.<\/p>\n

Thirdly<\/span>, natural justice objections remained serious. Tecnimont alleged that EuroChem filed over 20,000 pages and an expert report shortly before the final hearing, that Tecnimont was afforded only six minutes to argue, and was refused an opportunity to file a defence. The BHC found that these objections required examination at trial.<\/p>\n

Fourthly<\/span>, the BHC noted suppression of material facts. EuroChem had not disclosed the arbitration agreements, anti-suit orders of the Tribunal, and the English High Court’s anti-suit injunction. For a party seeking equitable relief, this lack of candour weighed against relief.<\/p>\n

Conclusion<\/p>\n

The decision is interlocutory, and the enforceability suit remains pending. However, it offers the first substantive indication of how Indian Courts may approach Russian judgments rendered under Article 248.1.<\/p>\n

The key message is that Indian Courts will not automatically defer to a Russian Court’s invocation of Article 248.1. They will apply their own assessment of competent jurisdiction in the international sense. Pre-existing arbitration agreements and ongoing arbitral proceedings on the same dispute will be powerful factors against recognition. Natural justice will remain a live ground of challenge. Suppression of competing orders from the contractually chosen forum will be perilous.<\/p>\n

For parties facing or contemplating enforcement of Russian judgments in India, the BHC’s decision is a significant development. It signals that Article 248.1 will not be treated as a self-validating basis for jurisdiction.<\/p>\n<\/div>\n\n

*Senior Partner, Khaitan & Co.<\/span><\/strong><\/p>\n

**Counsel, Khaitan & Co.<\/span><\/strong><\/p>\n

***Senior Associate, Khaitan & Co.<\/span><\/strong><\/p>\n

1.<\/a> Interim Application (L) no. 569 of 2026 in Commercial suit no. 6 of 2026<\/p>\n

2.<\/a> [2025] EWHC 94 (Comm)<\/p>\n","protected":false},"excerpt":{"rendered":"

by Sanjeev Kapoor*, Dhritiman Roy** and Sania Abbasi***<\/p>\n","protected":false},"author":67011,"featured_media":389219,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20271,47404,55534],"tags":[2518,56413,29463,72847,108758,46727,108757,108760,12001,30032,108755,108759,108756],"class_list":["post-389218","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-experts_corner","category-khaitan-co","category-law-firm","tag-Bombay_High_Court","tag-commercial-litigation","tag-conflict-of-laws","tag-cross-border-disputes","tag-enforcement-of-foreign-judgments","tag-foreign-arbitral-awards","tag-foreign-judgments","tag-india-russia-legal-dispute","tag-indian-courts","tag-international-arbitration","tag-lugovoy-law","tag-recognition-of-foreign-judgments","tag-russia-lugovoy-law"],"yoast_head":"\nRussia's Lugovoy Law Meets Indian Enforcement: Bombay High Court Draws the 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