Russia and Europe: legal provision vs. judicial precedent

Advocate Artem Kukin, Partner of the Law Firm "YUST", spoke on the air of the Russia Today TV channel. He commented on the latest news of the Russian judicial practice and explained whether it is difficult for businessmen to defend their rights in the Russian and European jurisdictions.

According to the expert, dispute settlement in foreign jurisdictions is quite convenient for business, including Russian ventures. One of the main reasons for that is that many foreign jurisdictions – for example, the English one – have accumulated over 200 years of experience of settling commercial disputes.

The advocate reminded that Russia employs the continental law system, where the law has the priority and not court practice. Not every real moment of business life receives precise and prompt reflection in regulatory acts. A.Kukin stressed: “The precedents are important in that they can fill gaps in court practice, but they should not substitute the laws”.

He explained the way for the Russian businessmen to defend their rights and gave the example of bankruptcy legislation development. The first law, of a moderate size, was adopted in 1992. The second one followed in 1998, and, in the expert’s opinion, largely protected the creditors’ interests. Finally, the current version of the Federal Law “On bankruptcy” was adopted in 2002, which is rather balanced.

The expert concluded by recommending that foreign businessmen, who deal with Russian counterparts, should always check contracts and shareholder agreements for compliance with Russian law, which is to be applied in the event of a dispute. Practice shows that foreign companies sometimes eschew this and thus complicate the process of protection of their rights.

The complete version of the speech in English is available at the Russia Today website.