ARE WE SUING IN DUBAI? AYUR TOLD ABOUT THE PROS AND CONS OF DIAC IN THE CONDITIONS OF SANCTIONS

Since the beginning of 2022, the traditional mechanism for choosing an arbitration institute has become unclaimed, inaccessible and has raised the question of finding a new arbitration institute for the Russian business community. Under the current conditions, with a large number of sanctions measures, Daria Krivintsova, a representative of the Krasnodar regional branch of the Association of Lawyers of Russia, notes that the Dubai International Arbitration Center (DIAC) is a good alternative for protecting rights, but not without its drawbacks.

With the change in external conditions, the criteria for choosing arbitration also change, says Daria Krivintsova. In modern realities, DIAC is an arbitration institution that makes it possible to consider disputes involving Russian companies that have fallen under sanctions. This fact indicates an independent approach to the consideration of disputes with foreign companies.

"It is worth noting that DIAC has expanded and accepted new experienced judges, as well as new rules of work have been agreed in DIAC, taking into account generally recognized principles in European arbitrations and the community. According to the new rules, the parties can use the electronic service for filing documents and considering the case, the right to involve third parties in the case, the choice of a judge, if the parties could not agree on a candidate, count on an accelerated consideration of the case if certain conditions are met," the lawyer notes.

The disadvantages, according to the expert, include the lack of established law enforcement practice, which is just beginning to take shape. This may lead to a delay in the consideration of the case. The subjective factor is also of great importance – the case is being considered by a person - a specific arbitrator, and no one can guarantee an impartial examination of the case without violations, in the absence of practice.

Each arbitrator will use the knowledge, skills and abilities available to him, taking into account personal life experience, making decisions by analogy. The UAE has its own local legislation, which is reflected in international agreements and will undoubtedly be taken into account in dispute resolution. This also suggests that in this legal field, lawyers need to study new norms of the law, principles of work, mechanisms to protect the interests of Russian entrepreneurs.

"Currently, Russian entrepreneurs are in no hurry to resolve the disputes that have arisen in DIAC and treat it with caution. This is primarily due to the presence of previously concluded agreements, where a different arbitration institution is specified, as well as the lack of established law enforcement practice and a large number of emerging questions that have not yet been answered," adds a member of the Association of Lawyers of Russia.

At the same time, as Daria Krivintsova adds, DIAC strengthens its position in the world every year and forms new principles for dispute resolution. Many Russian companies are opening their legal branches in the UAE, and in the future their number will increase. This indicates the growing demand of the UAE for Russian business, which is likely to lead to greater demand for DIAC among the business community of the Russian Federation in resolving disputes in the future.