General Information

Mediation

Mediation is a method of resolving disputes with the assistance of a mediator based on the parties’ voluntary consent aimed at reaching an amicable settlement.

Resorting to mediation requires the consent of all disputing parties and the conclusion of a written agreement to mediate.

Mediation allows the parties not only to reach a compromise and maintain business relations but also to reduce the time of dispute resolution and the cost of legal representation.

RIMA and Mediation

RIMA supports mediation procedures by offering certain organisational and technical services on the basis of the parties’ agreement to mediate.

RIMA provides the following services:

1. Selection and recommendation of mediator candidates with obtaining the preliminary consent of such candidates: for example, 3-5 most suitable candidates, taking into account the nature, cost, and complexity of the dispute;
2. Provision of meeting premises for the parties and the mediator:
   • room accommodating up to 10 people (22 sq. m. or 25 sq. m.)
   • room accommodating up to 30 people (92 sq. m.)
3. Performing by a RIMA employee the functions of a mediator’s assistant (secretary);
4. Providing access to the OAS;
5. Other services upon request and after consulting with the parties.

The Parties may specify the list of required services in the agreement to mediate or in a separate agreement with RIMA.

The recommended database of mediators is also available at the website of the RAC at RIMA for the parties to select the mediator candidates independently. The contact information for communication with mediators can be provided by RIMA upon the parties’ request.

Referring the Dispute to Mediation

1. The parties may resort to the mediation procedure by concluding an agreement to mediate:
   • before the dispute arises;
   • after the commencement of arbitration at any stage of the proceedings until the award is rendered.
2. The mediation procedure shall commence from the date on which the parties conclude an agreement to mediate. Such agreement can be concluded either before the dispute arises or after, including at any stage of arbitration proceedings.
3. The existence of the agreement to mediate, as well as participation in mediation, shall not prevent a party from initiating arbitration.
4. The parties can stipulate in the agreement to mediate the possibility of confirming in arbitration administered by the RAC the settlement agreement reached in mediation. In this case, the settlement agreement will be confirmed in the form of an arbitral award on agreed terms under Articles 52, 76 of the RAC Arbitration Rules.

Mediation Procedure

Mediation is conducted in the form of negotiations between the parties that are moderated by a professional facilitator (mediator). The duration of the mediation procedure usually varies from a few hours to a month, depending on the nature and complexity of the dispute.

Mediation is characterized by less formality, and its procedure is determined by the mediator after consulting with the parties.

Cost of Mediation

The amount of the mediator’s fee for conducting the mediation procedure is determined by each mediator individually.

The fees of RIMA’s services in mediation constitute:

Arbitration fee for confirmation of the settlement agreement in arbitration administered by the RAC (according to Art. 8 of the Rules on Arbitration Fees and Arbitration Costs):

• The arbitration fee (can be calculated here) is decreased by 75%, if the arbitration was initiated to confirm the settlement agreement in the form of an arbitral award on agreed terms.
• The arbitration fee is decreased by 50%, if the parties reach a settlement agreement after the commencement of the arbitration but before the first oral hearing.
• The arbitration fee is decreased by 25%, if the parties reach a settlement agreement after the commencement of the arbitration but after the first oral hearing.

Outcomes of Mediation

As a result of the mediation procedure, the parties can reach a settlement agreement.

The settlement agreement concluded by the parties in written form can be confirmed by the arbitral tribunal as an arbitral award on agreed terms at the request of the parties to arbitration (Arb-Med-Arb procedure).

In case of resorting to arbitration solely for the settlement agreement confirmation (Med-Arb procedure), the agreement to mediate shall contain an indication of the possibility of confirming the settlement agreement in the arbitration administered by the RAC (Art. 76 of the Arbitration Rules).

If the settlement agreement is confirmed in the form of an arbitral award on agreed terms, such agreement shall have the same force and be enforceable in the same manner as an arbitral award.

If the parties to the arbitration reach the settlement agreement and do not apply for confirmation of such agreement (Arb-Med procedure), the arbitration shall be terminated in accordance with Para. 2 of Art. 55 of the Arbitration Rules.