Cross-Border Enforcement: A Reality Check

A US or European court judgment does not work in Russia by itself. It must first be recognised by a Russian court. That happens where a treaty exists or where Russian courts accept reciprocity and international comity. Foreign arbitral awards have a firmer path under the New York Convention, to which Russia is a party. Since 2020, sanctions-related rules have added serious obstacles for claimants from countries Russia treats as unfriendly.

Attorney Elena Petrova advises creditors in California and elsewhere on whether enforcement in Russia is realistic and which routes make sense.

Rules in Russian Procedural Codes

Commercial judgments and arbitral awards go to the arbitrazh courts under the Arbitrazh Procedure Code. Judgments in civil matters involving individuals go to courts of general jurisdiction under the Civil Procedure Code. The application is filed where the debtor is located or holds property.

The court does not review the dispute on its merits. It checks formal grounds for refusal: improper notice to the debtor, a judgment not yet final, a prior Russian decision on the same dispute, exclusive Russian jurisdiction, expired enforcement time, or conflict with Russian public policy.

Treaties and Reciprocity

Russia has treaties on legal assistance with CIS states and a number of other countries. There is no such treaty with the United States.

How Practice Has Shifted

Before 2022, Russian courts sometimes recognised judgments from non-treaty countries based on comity. That trend has weakened. Courts now review public policy grounds more closely for claimants from unfriendly states.

The Arbitrazh Procedure Code also gives Russian courts exclusive jurisdiction over disputes involving sanctioned Russian persons. Such a party can ask a Russian court to bar foreign proceedings. A foreign judgment or award issued in breach of such a ban may be refused recognition.

Enforcing Foreign Arbitral Awards

Awards follow a separate track. The New York Convention limits refusal to a short list of grounds, such as an invalid arbitration agreement, lack of proper notice or public policy. Russian courts have long recognised foreign awards on this basis.

Risks have grown for claimants from unfriendly states. A debtor may argue that sanctions prevented it from taking part in the arbitration, for example by blocking payment of fees or travel to the seat.

Alternatives to Recognition

Sometimes a new lawsuit in Russia is faster than recognition. The foreign judgment then serves as strong evidence. Another option is enforcing against the debtor's assets outside Russia, where local rules may be friendlier.

Negotiated settlement is often the practical answer. It can be combined with security over assets or a structured payment plan.

Building an Enforcement Strategy

Start with an asset search. Without identifiable property in Russia, recognition has little value. Next, check whether the debtor or its owners fall under sanctions or counter-sanctions, since that affects both jurisdiction and payment routes.

Documents for filing need an apostille and a certified Russian translation. The deadline for seeking enforcement should be tracked from the start.

What a Foreign Creditor Should Prepare

The package usually includes a certified copy of the judgment or award, proof that it is final, proof of proper notice to the debtor, and powers of attorney. A written memo on prospects, risks and alternatives helps decide whether to proceed.

The main channel of communication with the attorney is email: attorneypetrova1@gmail.com.