12.01.2016 Natalia Demina, Associate

The Federal Law “On the Jurisdictional Immunities of a Foreign State and the Property of a Foreign State in the Russian Federation”

The Federal Law “On the Jurisdictional Immunities of a Foreign State and the Property in the Russian Federation” has become effective since January 01, 2016, which provisions are largely based on the UN Convention on Jurisdictional Immunities of Foreign States and Their Property (2004) signed but not ratified by Russia.

The Federal Law governs the relations associated with Russia invoking the jurisdictional immunities of a foreign state, which include “immunity from a state’s court jurisdiction”, “immunity from provisional measures”, “immunity from enforcement”. In addition, the law defines the cases when a foreign state and its property are not subject to the jurisdictional immunity, in particular in relation to labor disputes, property right disputes, intellectual property disputes, and in relation to disputes involving the participation of the foreign state in civil transactions with individuals or corporate bodies, or other institutions without corporate status, or other state, if such disputes are subject to the Russian court jurisdiction in accordance with the applicable legal rules, and the said transactions are not related to the exercise of sovereign powers by the foreign state.

One provision of the law should be particularly noted, according to which the jurisdictional immunities of a foreign state and its property can be restricted based on the principle of reciprocity (“the principle of reciprocal contempt”), i.e. the jurisdictional immunities of a foreign state and its property to the extent provided by law can be restricted if it is established that the foreign state imposes restrictions with respect to the jurisdictional immunities of the Russian Federation or its property in the foreign state territory, with regard to which and the property of which the jurisdictional immunity issue has arisen. As stated in the explanatory note to the draft law, the purpose of such rule is to ensure the balance of the jurisdictional immunity granted to the foreign state in accordance with Russian laws, and the jurisdictional immunity granted to the Russian Federation in this foreign state. When applying this principle, the court will have to give the appropriate reasons for its decision.

Following the enactment of the said law, the Civil and Arbitration Procedure Codes governing the particular aspects of the consideration of cases with participation of a foreign state, as well as the Federal Law “On Enforcement Proceedings” have also been amended.

See:

The Federal Law of 03.11.2015 No. 297-FZ “On the Jurisdictional Immunities of a Foreign State and the Property of a Foreign State in the Russian Federation”

The Federal Law of 29.12.2015 No. 393-FZ “On Amendments to Certain Statutory Instruments of the Russian Federation Following the Enactment of the Federal Law “On the Jurisdictional Immunities of a Foreign State and the Property of a Foreign State in the Russian Federation”