APPI-Based Disputes

Gerard David

The Judgement of Cambyses, 1498

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APPI-Based Disputes

On 1 April 2020 Federal Law “On protection and promotion of investments in the Russian Federation” entered into force. The Federal Law is aimed at creating “predictable and favorable conditions” for doing business and therefore provides a number of preferences to organizations implementing investment projects.

The new special investment regime is introduced by the Federal Law for the investors entered into an agreement for protection and promotion of investments (APPI). The APPI investment regime allows for receiving certain benefits. In particular, the organisations implementing investment projects will be able to benefit from a stabilisation clause that prohibits applying statutory provisions that worsen the conditions for business, as well as from support measures for the compensation of the costs incurred with a view to create or modernise infrastructure facilities.

The Standard form of APPI and the Rules governing the conclusion, amendment, termination of agreements is approved by the Russian Government.

APPI-based disputes may be resolved by arbitration administered by PAIs. To resort to such an arbitration, the parties to an APPI must include therein the relevant arbitration clause which correctly determines the PAI agreed upon by the parties.

Arbitration clause must indicate both the possibility of resolving disputes in a PAI and in a court.

General Arbitration Clause for Agreements for Protection and Promotion of Investments

Any and all disputes, controversies or claims arising out of or in connection with this Agreement, or a breach, execution, amendment, termination or invalidity hereof, shall be settled at the claimant’s discretion

1) by arbitration at the Russian Arbitration Center at the Autonomous Non-Profit Organisation “Russian Institute of Modern Arbitration” in accordance with the Arbitration Rules.

The Parties agree that for the purposes of sending written submissions, notifications and other written documents the following e-mail addresses shall be used:

[name of the Party]: [e-mail address]
[name of the Party]: [e-mail address]

In the event of change of the e-mail address specified above the Party shall immediately notify the other Party of such change and, if the arbitration has already commenced, also notify the Russian Arbitration Center at the Autonomous Non-Profit Organisation “Russian Institute of Modern Arbitration”. If such notice is not given, the Party failing to give notice shall be responsible for any written submissions, notifications and other written documents being sent to a wrong e-mail address.

The Parties hereby agree to be bound by and to execute the arbitral award.

The Parties hereby agree that the seat of arbitration shall be Russian Federation.

2) by litigation taking into account the jurisdictional rules stipulated by applicable legislation.