To Russia with Love: Hong Kong International Arbitration Centre attains PAI status in Russia
The Hong Kong International Arbitration Centre (“HKIAC”) becomes the first international arbitration institution to be recommended to administer arbitrations in the Russian Federation. Since 2015, foreign arbitration institutions must be on an approved list of permanent arbitration institutions (“PAIs”) in order to administer Russian-seated arbitrations. On 4 April 2019, the Council for the Development of Arbitration to the Ministry of Justice of the Russian Federation recommended that HKIAC be granted PAI status. The Russian Ministry of Justice is expected to approve the recommendation by 25 April 2019. Given the growing trade between China and its Russian speaking neighbours, PAI status will undoubtedly increase the attractiveness of HKIAC as an institution of choice for disputes involving Russian or CIS parties and Chinese counterparties seeking to agree a reputable institution on Russian territory. As the Belt & Road Initiative provides economic opportunities for companies from both countries, and as companies from Russia expand into Asia and Chinese companies increase their presence in Russia, Hong Kong RAS looks to play a key role in the resolution of disputes arising from that cooperation and expansion.