Sanctions Screening Precedes Everything
Before any recovery step is contemplated, the position has to be screened against the sanctions regimes applicable to you - which for a UK, EU or US creditor will govern whether the counterparty may be dealt with at all, whether funds may be received, and through which channels.
Russian counter-measures operate alongside them, affecting outbound payments to creditors in jurisdictions designated as unfriendly. The practical result is that a debt may be legally valid, judicially recoverable and still not lawfully payable to you. Establishing that at the outset avoids expenditure on a claim that cannot conclude.
Where screening indicates that recovery cannot lawfully proceed, we say so and stop. That is a better outcome than an unenforceable strategy.
Efficient, and Unusually Transparent
The arbitrazh courts hear commercial disputes between businesses and are, by international standards, quick - first instance decisions in months rather than years - with a well-developed appellate structure.
They also publish case files: filings, decisions and procedural history are available online for essentially every commercial case. For a creditor assessing a counterparty this is a research resource with few equivalents, showing what a company has been sued for, by whom, and how it behaved procedurally.
Clauses May Not Hold
Russian procedural law contains provisions permitting Russian parties to bring disputes before the arbitrazh courts, notwithstanding a foreign jurisdiction or arbitration clause, where sanctions are said to impede their access to justice. Anti-suit relief in support of that position has also been granted.
The consequence for a foreign creditor is that a carefully drafted London or Stockholm arbitration clause may not deliver the exclusivity it was intended to provide, and a foreign award may face resistance at the enforcement stage. Any strategy built on a foreign forum should be assessed against that reality rather than the clause alone.
Three Years
The general limitation period is three years, running from when the claimant knew or should have known of the violation and of the proper defendant, subject to an objective long-stop. Commencing proceedings interrupts it; an acknowledgement by the debtor restarts it.
How Long Does a Russian Claim Take?
| Stage | Typical Duration | Cost |
|---|---|---|
| Sanctions screening Before any recovery step | 1–2 weeks | Low |
| Formal demand Where lawful, written demand in Russian | 3–5 weeks | Low |
| Arbitrazh first instance Commercial court proceedings | 4–8 months | Medium |
| Appeal stages Where pursued | 6–12 months | Medium |
| Payment and transfer Subject to applicable restrictions | Uncertain | Medium |
How Does SXB Global Handle a Russian Case?
We screen first and advise second. Where the position permits recovery, the arbitrazh courts are a workable forum and the public case files make assessment straightforward. Where it does not, we tell you plainly rather than commencing something that cannot be completed. Where legal proceedings become appropriate, SXB Global coordinates the instruction of appropriately authorised local counsel. Legal services are provided by the relevant independent legal professionals.