- Russian Federation
- Arbitrazh Court of Moscow
LOAN AGREEMENT - BETWEEN A LIECHTENSTEIN COMPANY AND A RUSSIAN COMPANY - CONTAINING A CHOICE OF LAW CLAUSE IN FAVOUR OF THE UNIDROIT PRINCIPLES AND, FOR ISSUES NOT COVERED BY THE PRINCIPLES, IN FAVOUR OF RUSSIAN LAW
Claimant, a company registered in Liechtenstein, and Respondent, a Russian company, entered into a interest-free loan agreement, whereby Claimant was the lender and Respondent was the borrower. According to point 8 of the Contract, the Parties agreed that all disputes arising out of the contract shall be resolved according to the UNIDROIT Principles; in case there was no solution in the Principles, contractual disputes shall be resolved according to the law of the Russian Federation. Parties also agreed to submit the future disputes to the International Arbitration Court of the Chamber of Commerce and Industry of the Russian Federation.
Subsequently Claimant started an arbitration proceeding due to Respondent's non-performance and its claims were granted by the Arbitral Tribunal.
Respondent challenged the arbitral award, stating that it violated some fundamental principles of Russian arbitration law.
The Court annulled the award for procedural reasons.