{"id":391531,"date":"2026-07-28T09:00:07","date_gmt":"2026-07-28T03:30:07","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=391531"},"modified":"2026-07-27T18:20:18","modified_gmt":"2026-07-27T12:50:18","slug":"russian-court-refuses-halt-lcia-arbitration-proceedings","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/07\/28\/russian-court-refuses-halt-lcia-arbitration-proceedings\/","title":{"rendered":"Russian Arbitrazh Court Refuses to Halt LCIA Arbitration Proceedings Despite Claims of Restricted Access to Justice"},"content":{"rendered":"
\n

Russia Arbitrazh Court:<\/span> In proceedings arising from an application by Limited Liability Company “Intervtorresurs” to restrain London Court of International Arbitration (“LCIA”) arbitration proceedings commenced in London under a contractual arbitration clause, Dushechkina, J.<\/span>, considered whether foreign restrictive measures had rendered the parties’ agreement to arbitrate incapable of performance. The Court held that no evidence had been produced demonstrating that restrictive measures in force against the claimant prevented it from protecting its rights or participating in the agreed arbitral process. Thus, finding no basis for displacing the parties’ agreement to arbitrate before the LCIA, the Court dismissed the claim seeking to prohibit the initiation or continuation of the London arbitration proceedings.<\/p>\n

Background<\/p>\n

The dispute originated from Framework Contract dated 13-5-2020. Under the contract, Intervtorresurs acted as buyer, Icdas Celik acted as seller, and Vanomet AG acted as sub-seller. Clause 4 of the contract contained an arbitration agreement providing that disputes would be finally resolved by arbitration under the Rules of the LCIA, with London designated as the seat of arbitration.<\/p>\n

Intervtorresurs relied on LCIA Order dated 4-10-2024 in LCIA Case No. 246282 and contended that, due to restrictive measures imposed against Russian entities, it had effectively been deprived of the ability to protect its rights in foreign proceedings. It further alleged that it had not received various pleadings, applications, responses, evidence, counterclaims and procedural documents generated during the arbitration, save for Order No. 1 itself. According to the claimant, those circumstances rendered performance of the arbitration clause impossible and justified the issuance of an anti-suit injunction under Articles 248.1 and 248.2 of the Arbitrazh Procedure Code of the Russian Federation (“APC RF”).<\/p>\n

Analysis, Law, and Decision<\/p>\n

1. Applicability of Articles 248.1 and 248.2 APC RF<\/p>\n

The Court observed that Articles 248.1 and 248.2 of the APC RF were introduced to protect Russian individuals and legal entities whose ability to assert or defend their rights before foreign courts, international organisations, or arbitral tribunals may be affected by restrictive measures imposed by foreign States.<\/p>\n

The Court noted that the parties had expressly agreed to resolve disputes by LCIA arbitration seated in London. Consequently, Article 248.1(1), which applies in the absence of an arbitration agreement, had no application. However, under Article 248.1(4), Russian Arbitrazh Courts may assume jurisdiction where an agreement referring disputes to a foreign court or arbitral tribunal becomes unenforceable because restrictive measures create obstacles to a party’s access to justice.<\/p>\n

2. Claimant Failed to Demonstrate Obstacles to Access to Justice<\/p>\n

The claimant argued that restrictive measures, coupled with difficulties encountered in the LCIA proceedings, rendered performance of the arbitration agreement impossible. In this regard, the Court noted that the United Kingdom is included in the Russian Government’s list of foreign States and territories committing unfriendly acts against the Russian Federation and Russian persons.<\/p>\n

Nevertheless, the Court found that no evidence had been produced to show that specific restrictive measures had been imposed on, and remained in force against, the claimant. The Court further held that the dispute had not arisen because of restrictive measures introduced by the State in which the arbitral proceedings were to be conducted. Nor had the claimant established circumstances demonstrating significant difficulties in protecting its rights in accordance with the arbitration agreement or shown that protection of its rights and interests was possible only within the jurisdiction of the Russian Federation.<\/p>\n

In the absence of proof that the arbitration agreement had become incapable of performance or that restrictive measures had effectively deprived the claimant of access to justice, the Court concluded that the statutory requirements for granting the requested prohibition had not been satisfied. It therefore, dismissed the claim seeking to prohibit the initiation or continuation of the LCIA arbitration proceedings.<\/p>\n

[LLC “Intervtorresurs” v. Icdas Celik Enerjy Tersane Ve Ulasim Sanayi A.S. & Vanomet AG, Case No. A56-24342 of 2025, decided on 17-7-2026<\/span>]<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The case arose from a Russian company’s attempt to restrain LCIA arbitration proceedings on the ground that foreign restrictive measures and procedural difficulties had rendered the arbitration agreement incapable of performance.<\/p>\n","protected":false},"author":67520,"featured_media":391532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,12],"tags":[10111,29576,110906,110908,82896,110905,110907],"class_list":["post-391531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-foreigncourts","tag-arbitration-agreement","tag-international-commercial-arbitration","tag-lcia-arbitration","tag-lcia-london","tag-london-court-of-international-arbitration","tag-russian-arbitrazh-court","tag-russian-sanctions-jurisdiction"],"yoast_head":"\nRussian Court Refuses to Halt LCIA Arbitration Proceedings| SCC Times<\/title>\n<meta name=\"description\" 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