No Assets - no Recognition and Enforcement of Arbitral Award
Background & court’s opinion: The claimant (Carpatsky Petroleum Corporation, USA) sought the recognition and enforcement the arbitral award rendered by the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) against Ukranafta (Ukraine).
The jurisdiction of a Russian court was based on the claimant’s allegation that the defendant has assets in Russia. On the contrary, the defendant objected arguing that it has no any asset in Russia.
The Arbitrazh Court of the Kaliningrad region, relying on art 150 (1)(1) of the Commercial Procedural Code of the Russian Federation, decided to terminate proceedings because the court found that it did not have jurisdiction to hear the case due to there is no evidence that the defendant has any asset in Russia (the ruling dated 29 January 2014).
The Supreme Court’s decision: The High Court fully upheld this ruling (the decision of the Supreme Court of Russia dated 14 October 2014. Case А21-8191/2013).