Lawyer Monthly Magazine - June 2019 Edition

Firm Profile Bivonas Law is a litigation bou- tique specializing in high value and complex disputes with a particular focus on white- collar crime and civil fraud. It is in an alliance with Pen & Paper, a leading Russian law firm with similar expertise and focus. Both firms also have expertise in defending extra- dition requests. As partner, Sergey Litovchenko’s aim is to achieve close coopera- tion between the two firms, to ensure clients have access to advice and representation in both jurisdictions. Contact SERGEY LITOVCHENKO Partner Bivonas Law LLP, 24 Cornhill, London EC3V 3ND, UK T: +44 (0) 20 7337 2613 www.bivonaslaw.com slitovchenko@bivonas.com commercial dispute or fraud, before the English courts or in English law-based arbitration proceedings, if there was an arbitration agreement between the parties. However, since 2014 Russian claimants became increasingly cost sensitive when sanctions were first introduced against Russia and the Russian rouble was substantially devalued. As a result, Russian claimants are looking for third-party funding and ways to reduce costs. In this regard, boutique litigation firms like Bivonas Law can offer much more cost-efficient solutions to their clients than larger City firms. Conclusion It is likely that English Law and English courts will continue to be used by Russian and other former Soviet Union parties to resolve their disputes and/ or to pursue people who defrauded them and fled Russia to the UK. Even though English law remains popular for governing commercial agreements, the English courts are facing increasing competition from international arbitration centres. The main reasons for this are difficulties with the enforcement of English courts decisions in Russia. Arbitration awards are much easier to enforce due to Russia being a signatory to the New York Convention. The cost of English court proceedings is another reason why Russian parties now often choose arbitration. Obviously, arbitration before the LCIA or ICC could be as expensive as litigation before the English courts. However, there are now other international arbitration centres that are offering dispute resolution, for example, Hong Kong, where, on 4 April 2019, the Hong Kong International Arbitration Centre received approval to be recognised as a “permanent arbitration institution” in Russia meaning that its awards will be recognised and enforced in Russia and Singapore. Furthermore, Russia is actively encouraging its corporate entities to use its own tribunal, The International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation, which is known as MKAS. However, despite the above, English courts are likely to continue to be used by Russian parties to resolve disputes. I hope that the availability of third-party funding will help to continue this trend. LM “It is likely that English Law and English courts will continue to be used by Russian and other former Soviet Union parties to resolve their disputes and/ or to pursue people who defrauded them and fled Russia to the UK.” JUN 2019 23 Expert Insight www. lawyer-monthly .com