Russian Supreme Court rules arbitrators who are nationals of ‘unfriendly’ states are presumed not to be impartial and independent (C Thywissen GmbH v NS Bread Products)

Article summary

Arbitration analysis: In a landmark decision in Case No А45-19015/2023 (the ‘Decision’) rendered last month, the Russian Supreme Court (‘Court’) ruled that tribunals formed of nationals of ‘unfriendly’ states are presumed to lack independence and impartiality unless proven otherwise. The Court considered the cassation appeal against the rulings of lower courts, which recognized and enforced an award rendered by a FOSFA tribunal seated in London. The tribunal was constituted of nationals of Ukraine, Great Britain, and Denmark, all of which are included in ‘the list of foreign states and territories conducting unfriendly actions against the Russian Federation, Russian entities and persons’ by the Russian Government (so-called ‘unfriendly’ states). The Court disagreed with the lower courts, overturned the rulings sending the case back for reconsideration, including on the ground that the courts failed to consider the presumed lack of independence and impartiality as a basis for a...