Russian Court Refuses to Recognize Arbitration Award of Singapore Chamber of Maritime Arbitration
AMSTRADSHIPPING OU (Estonia) (Claimant) applied to the Arbitrazh Court of the Novosibirsk Region with an application for recognition and enforcement of the arbitration award against AO “Novosibirskkhlebprodukt” (Russia) (Respondent).
Case history:
On 13 December 2022, a contract for the chartering of a sea vessel was concluded between the Claimant and the Respondent.
The parties agreed on an arbitration clause, according to which the dispute should be considered under English law in the Singapore Chamber of Maritime Arbitration.
The parties agreed on a demurrage rate of USD 10,000 per day. According to the Claimant, the Respondent delayed unloading the vessel. The Claimant applied to arbitration. The Respondent took part in the arbitration.
On 19 April 2024, the Singapore Chamber of Maritime Arbitration issued an arbitration award. By this award, the arbitrators determined that the Respondent shall pay the Claimant USD 47,810 – damages for the delay of the vessel, as well as arbitration costs in the amount of USD 2,000.
The Respondent failed to perform the arbitration award. The Claimant filed an application with the Russian court for recognition and enforcement of the award.
Judgements of Russian Courts:
The Courts of First Instance and Cassation refused to recognize the enforcement of the arbitration award for the following reasons:
Singapore and Estonia were included in the list of foreign states and territories committing unfriendly acts against the Russian Federation, Russian legal entities and individuals (Order of the Government of the Russian Federation dated 05 March 2022 No. 430-r).
The introduction of sanctions by foreign states against Russian persons deliberately puts them in an unequal position with other persons. In this regard, doubts have arisen about the impartiality of the arbitrators.
Public policy, namely the principle of objectivity and impartiality of the court, has been violated.
The Court also drew attention to the fact that an anti-suit injunction was issued against the Claimant to initiate arbitration in Singapore.
Source: Case No. A45-1031/2025, Judgement dated 16 May 2025.
AMSTRADSHIPPING OU (Estonia) (Claimant) applied to the Arbitrazh Court of the Novosibirsk Region with an application for recognition and enforcement of the arbitration award against AO “Novosibirskkhlebprodukt” (Russia) (Respondent).
Case history:
On 13 December 2022, a contract for the chartering of a sea vessel was concluded between the Claimant and the Respondent.
The parties agreed on an arbitration clause, according to which the dispute should be considered under English law in the Singapore Chamber of Maritime Arbitration.
The parties agreed on a demurrage rate of USD 10,000 per day. According to the Claimant, the Respondent delayed unloading the vessel. The Claimant applied to arbitration. The Respondent took part in the arbitration.
On 19 April 2024, the Singapore Chamber of Maritime Arbitration issued an arbitration award. By this award, the arbitrators determined that the Respondent shall pay the Claimant USD 47,810 – damages for the delay of the vessel, as well as arbitration costs in the amount of USD 2,000.
The Respondent failed to perform the arbitration award. The Claimant filed an application with the Russian court for recognition and enforcement of the award.
Judgements of Russian Courts:
The Courts of First Instance and Cassation refused to recognize the enforcement of the arbitration award for the following reasons:
Singapore and Estonia were included in the list of foreign states and territories committing unfriendly acts against the Russian Federation, Russian legal entities and individuals (Order of the Government of the Russian Federation dated 05 March 2022 No. 430-r).
The introduction of sanctions by foreign states against Russian persons deliberately puts them in an unequal position with other persons. In this regard, doubts have arisen about the impartiality of the arbitrators.
Public policy, namely the principle of objectivity and impartiality of the court, has been violated.
The Court also drew attention to the fact that an anti-suit injunction was issued against the Claimant to initiate arbitration in Singapore.
Source: Case No. A45-1031/2025, Judgement dated 16 May 2025.