Key Takeaways from ALRUD’s Annual Dispute Resolution Event: Cross-Border Litigation – Challenges and Outlook

On February 20, 2025, ALRUD held its annual Dispute Resolution Practice event, bringing together leading legal professionals and business representatives to discuss current developments in litigation, the impact of sanctions on cross-border disputes, and evolving trends in commercial dispute regulation.

Expansion of Russian Court Jurisdiction and Cross-Border Disputes

One of the central themes of the event was the growing trend toward the exclusive jurisdiction of Russian courts over sanction-related disputes. Experts noted that Russian plaintiffs are increasingly turning to domestic courts to protect their interests, even circumventing previously agreed arbitration and jurisdiction clauses.

In 2024, there was a marked increase in cases where plaintiffs demanded that disputes be heard in Russian courts despite existing international jurisdiction agreements. However, transferring proceedings to Russian jurisdiction poses additional risks—most notably, the potential unenforceability of judgments abroad and the threat of anti-suit injunctions issued by foreign courts.

Enforceability of Russian Court Decisions and the Risk of Non-Recognition Abroad

The enforceability of Russian court judgments in foreign jurisdictions sparked active discussion. While geopolitical tensions pose challenges, recognition of Russian judgments remains possible, with a wide range of jurisdictions where such recognition is still taking place. Obstacles may arise from the presence of sanction-related elements or legal barriers such as the requirement to prove reciprocity or procedural irregularities during trial.

Nonetheless, the presence of sanctions does not automatically bar recognition of Russian judgments. Post-2022 case law shows that courts in Turkey, the UAE, and Israel continue to recognize Russian decisions—creating opportunities for debt recovery and asset protection outside Russia. There are also precedents for recognition in the U.S. and EU member states.

That said, the enforceability of Russian court decisions issued under Article 248.1 of the Russian Commercial Procedure Code remains uncertain, with no confirmed cases of foreign recognition to date. Any recognition analysis must consider the current status of reciprocity between Russia and the foreign jurisdiction in question.

The Growing Role of the Prosecutor General’s Office in Commercial Disputes

Another key topic was the increased involvement of the Russian Prosecutor General’s Office in commercial litigation. Attendees noted a surge in claims for asset seizure and a broader range of claims initiated by the state.

Over the past year, the Prosecutor General's Office has launched dozens of proceedings related to asset deprivatization, revision of major transactions, and recovery of damages in favor of the state. These developments present additional risks for businesses and call for proactive preparation for potential litigation.

Transformation of Litigation Trends in 2025

In closing, participants shared their forecasts for how litigation trends may evolve in 2025. Key trends identified include:

• Strengthening jurisdiction of Russian courts in cross-border disputes;

• Continued evolution of sanctions-related regulation and its influence on litigation;

• Rising number of bankruptcy cases involving foreign companies;

• Increasing role of the Prosecutor General’s Office in overseeing corporate transactions and expanding its enforcement tools, including in connection with violations of counter-sanctions decrees by the President of the Russian Federation.

ALRUD’s annual Dispute Resolution event reaffirmed its reputation as a leading platform for discussing litigation developments in Russia. The firm will continue to monitor changes in enforcement practices and support clients in developing effective legal strategies to protect their businesses amid a shifting regulatory environment.