Litigation funding—Russia—Q&A guide
Litigation funding—Russia—Q&A guide

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Litigation funding—Russia—Q&A guide
  • 1. Is third-party litigation funding permitted? Is it commonly used?
  • 2. Are there limits on the fees and interest funders can charge?
  • 3. Are there any specific legislative or regulatory provisions applicable to third-party litigation funding?
  • 4. Do specific professional or ethical rules apply to lawyers advising clients in relation to third-party litigation funding?
  • 5. Do any public bodies have any particular interest in or oversight over third-party litigation funding?
  • 6. May third-party funders insist on their choice of counsel?
  • 7. May funders attend or participate in hearings and settlement proceedings?
  • 8. Do funders have veto rights in respect of settlements?
  • 9. In what circumstances may a funder terminate funding?
  • More...

Litigation funding—Russia—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to litigation funding in Russia published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Aperio Intelligence—Max Odenthal

1. Is third-party litigation funding permitted? Is it commonly used?

Third-party litigation funding is a relatively nascent concept in Russia compared to more established markets such as the UK and US. It is permitted and a small number of domestic funders have been established since the late 2010s. Uptake of funding remains limited, but appears to be growing: a 2019 survey of the Russian litigation market indicated that 8 per cent of respondents (including litigators, in-house counsel and end-clients) had worked with litigation funders in some capacity, up from 6 per cent in 2018. Topics related to litigation funding are now regularly on the agenda at major Russian panel events focusing on litigation and bankruptcy, particularly those aimed at an international audience.

There do not appear to have been any reported funded cases to date in which courts have commented on funders' involvement. The increasing number of cases backed by third-party funders will hopefully lead to further clarity on Russian courts' stance on the issue.

In addition, a working group including funders, lawyers and officials to develop the draft bill “On the financing of litigation costs by third parties” has been formed.

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