Lidings Achieved Recognition and Enforcement of FOSFA Arbitration Court Decision in Russia

Lidings Dispute Resolution practice team achieved recognition and enforcement of an arbitration award of the Federation of Oils, Seeds and Fats Associations (FOSFA) in favor of a major German food producer in a dispute against a Russian agricultural manufacturer.

During the proceedings the arbitration court awarded the German company USD 600,000 in damages and interest for the non-execution of the court decision rendered. The award was not voluntarily enforced by the Russian company, so we applied to the court for enforcement of the arbitration award in Russia.

The court granted the client's application and the District Court upheld the cassation appeal, despite substantial arguments based on sanctions restrictions and alleged procedural violations.

Lidings Partner and Head of the Dispute Resolution practice Alexander Popelyuk, commented on the case:

The particular significance of winning this case is that arbitral awards of the Federation of Oils, Seeds and Fats Associations (FOSFA) have never before been recognized in Russia and it is all the more encouraging considering current confrontation with unfriendly countries.  Successful cases of recognition of foreign arbitrations and courts from unfriendly jurisdictions have practically disappeared in our country.