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Rules of the St Petersburg International Commercial Arbitration Court

  • General Provisions

    The St. Petersburg International Commercial Arbitration Court ("SPICAC") is an independent permanent commercial arbitration court established by the Saint-Petersburg Foundation for Protection of Investments ("SPFPI") with the assistance of the Mayor's Office of Saint-Petersburg.

    SPICAC shall resolve economic disputes in accordance with applicable legislation, international agreements and international practice. These Rules are based on the Law of the Russian Federation "On International Commercial Arbitration" and the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL).

    The "competent body" of SPICAC authorized to represent SPICAC and carry out executory actions pursuant to these Rules shall be the President of SPICAC or his deputy, or in absence, the Executive Director of SPFPI or his deputy.

    Section I

    Introductory Provisions

    Article 1

    Scope of Application

    1. Where the parties to a contract have agreed in writing that disputes in relation to that contract shall be referred to SPICAC for consideration, then such disputes shall be settled in accordance with these Rules subject to such modifications as the parties may agree in writing. Such arbitration agreement may be concluded in the form of an arbitration clause in a contract or in the form of a separate agreement.

    The agreement shall be deemed concluded in writing if it is contained in a document signed by the parties or concluded by means of exchange of letters, teletype or telegraph messages, or other means of electronic communication which provide a record of the agreement, or by means of exchange of statements of claim and defence in which the existence of an agreement is alleged by one party and not denied by another. A reference in a contract to a document containing an arbitration clause constitutes an arbitration -agreement provided that the contract is in writing and the reference is such as to make that clause part of the contract.

    2. These Rules shall govern the arbitration proceedings, except that where any of these Rules is in conflict with a provision of the law applicable to the arbitration from which the parties cannot deviate, that provision shall prevail.

    3. By agreement between the parties SPICAC may hear: disputes concerning contractual and other civil law relations, arising out of foreign trade and other types of international economic activity, if the commercial enterprise of at least one of the parties is located abroad; disputes of organizations with foreign investment and international associations and organizations established on the territory of the Russian Federation between themselves, disputes between their participants, as well as their disputes with other subjects of the law of the Russian Federation; other economic disputes which under Russian legislation may be heard by an arbitration court1.

    4. For purposes of paragraph 3 of this article :

    - if a party has more than one commercial enterprise, the commercial enterprise shall be considered the one which has the closest relationship to the arbitration agreement ;

    - if a party has no commercial enterprise, its permanent place of residence is taken into account.

    Article 2

    Notice, Calculation of Periods of Time

    1. For the purposes of these Rules, any notice, including a notification, communication or proposal, is deemed to have been received if it is physically delivered to the addressee or if it is delivered at his habitual residence, the commercial enterprise's location or the addressee's mailing address, or, if none of these can be found after making reasonable inquiry, then at the addressee's last-known residence or the commercial enterprise. Notice shall be deemed to have been received on the day it is so delivered.

    2. For purposes of calculating a period of time under these Rules, such period shall commence on the day following the day when a notice, notification, communication or proposal is received. If the last day of such period is an official holiday or non-business day at the residence or the commercial enterprise's location of the addressee, the period is extended until the first business day which follows. Official holidays or non-business days occurring during the running of the period of time are not excluded in the calculation thereof.

    Article 3

    Notice of Arbitration

    1. The party initiating recourse to arbitration (hereinafter called the "claimant") shall give to other party (hereinafter called the "respondent") and to SPICAC a notice of arbitration.

    2. Arbitral proceedings shall be deemed to commence on the date on which the notice of arbitration is received by the respondent.

    3. The notice of arbitration shall include the following:

    (a) A demand that the dispute be referred to arbitration;

    (b) The names and addresses of the parties;

    (c) A reference to the arbitration clause or the separate arbitration agreement that is invoked;

    (d) A reference to the contract out of or in relation to which the dispute arises;

    (e) The general description of the nature of the claim and an indication of the amount involved, if any;

    (f) A relief or remedy sought;

    (g) A proposal as to the number of arbitrator (i.e. one or three), if the parties have not previously agreed thereon.

    4. The notice of arbitration may also include:

    (a) The proposal for the appointment of a sole arbitrator referred to in article 6, paragraph 1;

    (b) The notification of the appointment of a sole arbitrator referred to in article 7;

    (c) The statement of claim referred to in article 18.

    5. Simultaneously with sending of the notice of arbitration the respondent shall pay to SPICAC the registration fees in accordance with the current Regulation on Arbitral Costs of SPICAC.

    6. If after receiving the notice of arbitration it is obvious that such dispute is not within the competence of SPICAC, SPICAC shall stop the arbitral proceeding.

    7. In the event one of the parties to the arbitration agreement brings an action to a court, the arbitration may nevertheless be commenced or continued and an arbitration award may be made, while the issue of jurisdiction is pending before the court.

    Article 4

    Representation and Assistance

    The parties may be represented or assisted by persons of their choice. The names and addresses of such persons must be communicated in writing to the other party; such communication must specify whether the appointment is being made for purposes of representation or assistance.

    Section II

    Composition of the Arbitral Tribunal

    Article 5

    Number of Arbitrators

    If the parties have not previously agreed on the number of arbitrators (i.e. one or three), and if within 15 days after the receipt by the respondent of the notice of arbitration the parties have not agreed that there shall be only one arbitrator, three arbitrators shall be appointed.

    Appointment of Arbitrators (Articles 6 - 8)

    Article 6

    Appointment of a Sole Arbitrator

    1. If a sole arbitrator is to be appointed, either party may propose to the other the names of one or more persons, one of whom would serve as the sole arbitrator.

    2. If within 30 days after receipt by a party of a proposal made in accordance with paragraph 1, the parties have not reached agreement on the choice of a sole arbitrator, the sole arbitrator shall be appointed by the competent body of SPICAC. If within 45 days after submitting of the statement of claim neither of the parties has proposed a nominee for the sole arbitrator, the sole arbitrator shall be appointed by the competent body of SPICAC.

    3. The competent body of SPICAC shall, at the request of one of the parties, appoint the sole arbitrator as promptly as possible. In making the appointment the competent body of SPICAC shall use the following list-procedure, unless both parties agree that the list-procedure should not be used or unless SPICAC determines in its discretion that the use of the list-procedure is not appropriate for the case:

    (a) At the request of one of the parties SPICAC shall communicate to both parties an identical list containing at least three names;

    (b) Within 15 days after the receipt of this list, each party may return the list to SPICAC after having deleted the name or names to which it objects and numbered the remaining names on the list in the order of its preference;

    (c) After the expiration of the above period of time SPICAC shall appoint the sole arbitrator from among the names approved on the lists returned to it and in accordance with the order of preference indicated by the parties;

    (d) If for any reason the appointment cannot be made according to this procedure, the competent body of SPICAC may exercise its discretion in appointing the sole arbitrator.

    4. In making the appointment, the competent body of SPICAC shall have regard to such considerations as are likely to secure the appointment of an independent and impartial arbitrator and shall take into account as well the advisability of appointing an arbitrator of a nationality other than the nationalities of the parties.

    Article 7

    Appointment of Three Arbitrators

    1. If three arbitrators are to be appointed, each party shall appoint one arbitrator. The two arbitrators thus appointed shall choose the third arbitrator who will act as the presiding arbitrator of the tribunal.

    2. If within 30 days after the receipt of a party's notification of the appointment of an arbitrator the other party has not notified the first party of the arbitrator he has appointed, the first party may request the competent body of SPICAC to appoint the second arbitrator.

    3. If within 30 days after the appointment of the second arbitrator the two arbitrators have not agreed on the choice of the presiding arbitrator, the presiding arbitrator shall be appointed by the competent body of SPICAC under the same procedure as the one applied for the appointment of a sole arbitrator under article 6.

    Article 8

    Information Necessary for Appointment of the Arbitrators

    1. When the competent body of SPICAC is requested to appoint an arbitrator pursuant to article 6 or article 7, the party which makes the request shall send to the competent body a copy of the notice of arbitration, a copy of the contract out of or in relation to which the dispute has arisen and a copy of the arbitration agreement if it is not contained in the contract. The competent body may require from either party such information as it deems necessary to fulfil its function.

    2. Where the names of one or more persons are proposed for appointment as arbitrators, their full names, addresses and nationalities shall be indicated, together with a description of their qualifications.

    3. SPICAC shall maintain a list of arbitrators from which the competent body may appoint an arbitrator in accordance with these Rules. The competent body may also appoint as arbitrators persons not on such list.

    Article 9

    Notification of the Parties of the Grounds for Challenge

    A prospective arbitrator shall disclose to those who approach him in connection with his possible appointment any circumstances likely to give rise to justifiable doubts as to his impartiality or independence. An arbitrator, from the time of his appointment and throughout the arbitral proceedings, shall without delay disclose any such circumstances to the parties unless they have already been informed by him of these circumstances.

    Article 10

    Grounds for Challenge

    1. Any arbitrator may be challenged if circumstances exist that give rise to justifiable doubts as to the arbitrator's impartiality or independence, or if he does not possess any qualifications agreed to by the parties.

    2. A party may challenge the arbitrator appointed by it only for reasons of which it becomes aware after the appointment has been made.

    Article 11

    Challenge Procedure

    1. A party who intends to challenge an arbitrator shall send notice of his challenge within 15 days after the appointment of the challenged arbitrator has been notifiedto the challenging party or within 15 days after the circumstances mentioned in article 9 and 10 became known to that party.

    2. The challenge shall be notified to the other party, to the arbitrator who is challenged and to the other members of the arbitral tribunal. The notification shall be in writing and shall state the reasons for the challenge.

    3. When an arbitrator has been challenged by one party, the other party may agree to the challenge. The arbitrator may also, after the challenge, withdraw from his office. In neither case does this imply acceptance of the validity ofthe grounds for the challenge. In both cases the procedure provided in article 6 or 7 shall be used in full for the appointment of the substitute arbitrator, even if during the process of appointing the challenged arbitrator a party had failed to exercise its right to appoint or to participate in the appointment.

    Article 12

    Consequences of Rejection and Sustainment of a Challenge

    1. If the other party does not agree to the challenge and the challenged arbitrator does not withdraw, the decision on the challenge will be made by the competent body of SPICAC.

    2. If the competent body sustains the challenge, a substitute arbitrator shall be appointed or chosen pursuant to the procedure applicable to the appointment or choice of an arbitrator as provided in articles 6 to 9.

    Article 13

    Replacement of an Arbitrator

    1. In the event of the death or resignation of an arbitrator during the course of the arbitral proceedings, a substitute arbitrator shall be appointed or chosen pursuant to the procedure provided for in articles 6 to 9 that was applicable to the appointment or choice of the arbitrator being replaced.

    2. In the event that an arbitrator fails to act or in the event of the de jure or de facto impossibility of his performing his functions, the procedure in respect of the challenge and replacement of an arbitrator as provided in the preceding articles shall apply.

    Article 14

    Repetition of Hearing in the event of the Replacement of an Arbitrator

    If under articles 11 to 13 the sole or presiding arbitrator is replaced, any hearings held previously shall be repeated; if any other arbitrator is replaced, such prior hearings may be repeated at the discretion of the arbitral tribunal.

    Section III

    Arbitral Proceedings

    Article 15

    General Provisions

    1. Subject to these Rules, the arbitral tribunal may conduct the arbitration in such manner as it considers appropriate, provided that the parties are treated with equality and that at any stage of the proceedings each party is given a full opportunity of presenting his case.

    2. If either party so requests at any stage of the proceedings, the arbitral tribunal shall hold hearings for the presentation of evidence by witness, including expert witnesses, or for oral argument. In the absence of such a request, the arbitral tribunal shall decide whether to hold such hearings or whether the proceedings shall be conducted on the basis of documents and other materials.

    3. All documents or information supplied to the arbitral tribunal by one party shall at the same time be communicated by that party to the other party.

    Article 16

    Place of Arbitration

    1. Unless the parties have agreed upon the place where the arbitration is to be held, such place shall be determined by the arbitral tribunal, having regard to the circumstances of the arbitration, including the convenience of the parties.

    2. The arbitral tribunal may determine the place of the arbitration within the country or the city agreed upon by the parties. It may hear witnesses and hold meetings for consultation among its members at any place it deems appropriate, having regard to the circumstances of the arbitration.

    3. The arbitral tribunal may meet at any place it deems appropriate for the inspection of goods, other property or documents. The parties shall be given sufficient notice to enable them to be present at such inspection.

    4. The award shall be made at the place of arbitration.

    Article 17

    Language

    1. Subject to an agreement by the parties, the arbitral tribunal shall, promptly after its appointment, determine the language or languages to be used in the proceedings. This determination shall apply to the statement of claim, the statement of defence, and any further written statements and, if oral hearings take place, to the language or languages to be used in such hearings.

    2. The arbitral tribunal may order that any documents annexed to the statement of claim or statement of defence, and any supplementary documents or exhibits submitted in the course of the proceedings, delivered in their original language, shall be accompanied by a into the language or languages agreed upon by the parties or determined by the arbitral tribunal.

    Article 18

    Statement of Claim

    1. Unless the statement of claim was contained in the notice of arbitration, within a period of time to be determined by the arbitral tribunal, the claimant shall communicate his statement of claim in writing to the respondent and to each of the arbitrators. A copy of the contract, and of the arbitration agreement if not contained in the contract, shall be annexed thereto.

    2. The statement of claim shall include the following particulars:

    (a) The names and addresses of the parties;

    (b) A statement of the facts supporting the claim;

    (c) The points at issue;

    (d) The relief or remedy sought.

    The claimant may annex to his statement of claim all documents he deems relevant or may add a reference to the documents or other evidence he will submit.

    Article 19

    Statement of Defence

    1. Within a period of time to be determined by the arbitral tribunal, the respondent shall communicate his statement of defence in writing to the claimant and to each of the arbitrators.

    2. The statement of defence shall reply to the particulars (b), (c) and (d) of the statement of claim (article 18, para.2). The respondent may annex to his statement the documents on which he relies for his defence or may add a reference to the documents or other evidence he will submit.

    3. In his statement of defence, or at a later stage in the arbitral proceedings if the arbitral tribunal decides that the delay was justified under the circumstances, the respondent may make a counter-claim arising out of the same contract or rely on a claim arising out of the same contract for the purpose of a set-off.

    4. The provisions of article 18, paragraph 2, shall apply to a counter-claim and a claim relied on for the purpose of a set-off.

    Article 20

    Amendments to the Claim or Defence

    During the course of the arbitral proceedings either party may amend or supplement its claim or defence unless the arbitral tribunal considers it inappropriate to allow such amendment having regard to the delay in making it or prejudice to the other party or any other circumstances. However, a claim may not be amended in such a manner that the amended claim falls outside the scope of the arbitration clause or separate arbitration agreement.

    Article 21

    Pleas as to the Jurisdiction of the Arbitral Tribunal

    1. The arbitral tribunal may rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement. For such purpose, an arbitration clause which forms part of a contract shall be treated as an agreement independent of the other terms of the contract. A decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity of the arbitration clause.

    2. A plea that the arbitral tribunal does not have jurisdiction shall be raised not later than in the statement of defence or, with respect to a counter-claim, in the reply to the counter-claim. A party is not precluded from raising such a plea by the fact that he has appointed, or participated in the appointment of, an arbitrator. A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised as soon as the matter alleged by a party to be beyond the scope of its authority is raised during the arbitral proceedings. The tribunal may, in any of these cases, admit a later plea if it considers the delay justified.

    3. The arbitral tribunal may rule on a plea referred to in paragraph 2 of this article either as a preliminary question or in an award on the merits. If the arbitral tribunal rules as a preliminary question that it has jurisdiction, any party may request, within 30 days after having received notice of such ruling, a court of the subject of the Russian Federation located at the place of the arbitration to decide the matter, which decision shall not be subject to appeal. While such a request is pending, the arbitral tribunal may continue the arbitral proceedings and make an arbitral award.

    Article 22

    Further Written Statements

    The arbitral tribunal shall decide which further written statements, in addition to the statement of claim and the statement of defence, shall be required from the parties or may be presented by them and shall fix the periods of time for communicating such statements.

    Article 23

    Periods of Time

    The periods of time fixed by the arbitral tribunal for the communication of written statements (including the statement of claim and statement of defence) shall not exceed 45 days. However, the arbitral tribunal may extend the time limits if it concludes that an extension is justified.

    Article 24

    Evidence

    1. Each party shall have the burden of proving the facts relied on to support his claim or defence.

    2. The arbitral tribunal may, if it considers it appropriate, require a party to deliver to the tribunal and to the other party, within such a period of time as the arbitral tribunal shall decide, a summary of the documents and other evidence which that party intends to present in support of the facts in issue set out in his statement of claim or statement of defence.

    3. At any time during the arbitral proceedings the arbitral tribunal may require the parties to produce documents, exhibits or other evidence within such a period of time as the tribunal shall determine.

    4. The arbitral tribunal or a party with the approval of the arbitral tribunal may request from a competent court of the Russian Federation assistance in taking evidence. The court may execute the request according to the rules on taking evidence and securing court orders.

    Article 25

    Hearings

    1. In the event of an oral hearing, the arbitral tribunal shall give the parties adequate notice of the date, time and place thereof.

    2. If witnesses are to be heard, at least fifteen days before the hearing each party shall communicate to the arbitral tribunal and to the other party the names and addresses of the witnesses he intends to present, the subject upon and the languages in which the witnesses will give their testimony.

    3. The arbitral tribunal shall make arrangements for the translation of oral statements made during the proceedings and for a record of the hearing if either is deemed necessary by the tribunal under the circumstances of the case, or if the parties have agreed thereto and have such agreement to the tribunal at least fifteen days before the hearing.

    4. Hearings shall be held in camera unless the parties agree otherwise. During the testimony of witnesses the arbitral tribunal may require the retirement of other witnesses. The arbitral tribunal is free to determine the manner in which witnesses are examined.

    5. Evidence of witnesses may also be presented in the form of written statements signed by them.

    6. The arbitral tribunal shall determine the admissibility, relevance, materiality and weight of the evidence offered.

    Article 26

    Interim Measures of Protection

    1. At the request of either party, the arbitral tribunal may take any interim measures it deems necessary in respect of the subject-matter of the dispute, including measures for the conservation of the goods forming the subject-matter in dispute, such as ordering their deposit with a third person or the sale of perishable goods.

    2. Such interim measures may be established in the form of an interim award. The arbitral tribunal shall be entitled to require security for the costs of such measures.

    3. A request for interim measures addressed by any party to a judicial authority and said authority's judgment on the application of such measures shall not be deemed incompatible with the agreement to arbitrate, or as a waiver of that agreement.

    Article 27

    Experts

    1. The arbitral tribunal may appoint one or more experts to report to it, in writing on specific issues to be determined by the tribunal. A copy of the expert's terms of reference, established by the arbitral tribunal, shall be communicated to the parties.

    2. The parties shall give the expert any relevant information or produce for his inspection any relevant documents or goods that he may require of them. Any dispute between a party and such expert as to the relevance of the required information or production shall be referred to the arbitral tribunal for decision.

    3. Upon receipt of the expert's report, the arbitral tribunal shall communicate a copy of the report to the parties who shall be given the opportunity to express, in writing, their opinion on the report. A party shall be entitled to examine any document on which the expert has relied in his report.

    4. At the request of either party the expert, after delivery of the report, may be heard at a hearing where the parties shall have the opportunity to be present and to interrogate the expert. At this hearing either party may present expert witnesses in order to testify on the points at issue. The provisions of article 25 shall be applied to such proceedings.

    Article 28

    Default

    1. If, within the period of time fixed by the arbitral tribunal, the claimant has failed to communicate his claim without showing sufficient cause for such failure, the arbitral tribunal shall issue an order for the termination of the arbitral proceedings. If, within the period of time fixed by the arbitral tribunal, the respondent has failed to communicate his statement of defence, the arbitral tribunal shall order that the proceedings continue.

    2. If one of the parties, duly notified under these Rules, fails to appear at a hearing, without showing sufficient cause for such failure, the arbitral tribunal may proceed with the arbitration.

    3. If one of the parties, duly invited to produce documentary evidence, fails to do so within the established period of time, without showing sufficient cause for such failure, the arbitral tribunal may make the award on the evidence before it.

    Article 29

    Closure of Hearings

    1. The arbitral tribunal may inquire of the parties if they have any further proof to offer or witnesses to be heard or submissions to make and, if there are none, it may declare the hearings closed.

    2. The arbitral tribunal may, if it considers it necessary owing to exceptional circumstances, decide, on its own motion or upon application of a party, to reopen the hearings at any time before the award is made.

    Article 30

    Waiver of Rules

    A party who knows that any provision of, or requirement under, these Rules has not been complied with and yet proceeds with the arbitration without promptly stating his objection to such non-compliance, shall be deemed to have waived his right to object.

    Section IV

    The Award

    Article 31

    Rendering of Decision by Panel of Arbitrators

    1. When there are three arbitrators, any award or other decision of the arbitral tribunal shall be made by a majority of the arbitrators.

    2. In the case of questions of procedure, when there is no majority or when the arbitral tribunal so authorizes,the presiding arbitrator may decide on his own, object to revision, if any, by the arbitral tribunal.

    Article 32

    Form and Effect of the Award

    1. In addition to making a final award, the arbitral tribunal shall be entitled to make interim, interlocutory, or partial awards.

    2. The award shall be made in writing and shall be final and binding on the parties. The parties undertake to carry out the award without delay.

    3. The arbitral award shall state the reasons upon which the award is based, conclude whether the claimant's demands shall be satisfied or rejected, and state the amount of the arbitration fees and costs of the proceedings and their apportionment between the parties.

    4. An award shall be signed by the arbitrators and it shall contain the date on which and the place where the award was made. Where there are three arbitrators and one of them fails to sign, the award shall state the reason for the absence of the signature.

    5. The award may be made public only with the consent of both parties.

    6. Copies of the award signed by the arbitrators shall be communicated by the arbitration tribunal to the parties and to the secretary of SPICAC.

    Article 33

    Applicable Law, Amiable Compositeur

    1. The arbitral tribunal shall apply the law designated by the parties as applicable to the substance of the dispute. Any designation of the law or legal system of a given state shall be construed, unless otherwise expressed in the arbitration agreement, as directly referring to the substantive law of that State and not to its conflict of laws rules. Failing such designation by the parties, the arbitral tribunal shall apply the law determined by the conflict of laws rules which it considers applicable.

    2. The arbitral tribunal shall decide as amiable compositeur or ex aequo et bono only if the parties have expressly authorized the arbitral tribunal to do so and if the law applicable to the arbitral procedure permits such arbitration.

    3. In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and shall take into account the usages of the trade applicable to the transaction.

    Article 34

    Settlement or Other Grounds for Termination

    1. If, before the award is made, the parties agree on asettlement of the dispute, the arbitral tribunal shall either issue an order for the termination of the arbitral proceedings, or if requested by both parties and accepted by the tribunal, record the settlement in the form of an arbitral award on agreed terms.

    2. If, before the award is made, the continuation of the arbitral proceedings becomes unnecessary or impossible for any reason not mentioned in paragraph 1, the arbitral tribunal shall inform the parties of its intention to issue an order for the termination of the proceedings. The arbitral tribunal shall have the power to issue such an order unless a party raises justifiable grounds for objection.

    3. Copies of the order for termination of the arbitral proceedings or of the arbitral award on agreed terms, signed by the arbitrators, shall be communicated by the arbitral tribunal to the parties. Where an arbitral award on agreed terms is made, the provisions of article 32, paragraphs 2 to 6, shall apply.

    4. An arbitral award on a settlement agreement has the same force and is subject to enforcement just as any other award on the merits of the case.

    Article 35

    Interpretation of the Award

    1. Within 30 days after the receipt of the award, either party, with notice to the other party, may request that the arbitral tribunal give an interpretation of the award.

    2. The interpretation shall be given in writing within 30 days after the receipt of the request. The interpretation shall form part of the award and the provisions of article 32, paragraphs 2 to 6, shall apply.

    Article 36

    Correction of the Award

    1. Within 30 days after the receipt of the award, either party, with notice to the other party, may request the arbitral tribunal to correct in the award any computational mistakes, miswritings or typographical errors, or any errors of similar nature. The arbitral tribunal may within 30 days after communication of the award to the parties make such corrections on its own initiative.

    2. Such corrections shall be in writing, and the provisions of article 32, paragraphs 1 to 6, shall apply.

    Article 37

    Additional Award

    1. Within 30 days after the receipt of the award, either party, with notice to the other party, may request the arbitral tribunal to make an additional award as to claims presented in the arbitral proceedings but omitted from the award.

    2. If the arbitral tribunal considers the request for an additional award to be justified and considers that the omission can be rectified without any further hearings and evidence, it shall complete its award within 60 days after the receipt of the request.

    3. When an additional award is made, the provisions of article 32, paragraphs 2 to 7, shall apply.

    Section V

    Costs Determination Procedure

    Article 38

    Costs

    The arbitral tribunal shall fix the costs of arbitration in its award. The term "costs" includes only:

    (a) The fees of the arbitral tribunal to be stated separately as to each arbitrator and to be fixed by the tribunal itself in accordance with article 39;

    (b) The travel and other expenses incurred by the arbitrators;

    (c) The costs of expert advice and of other assistance required by the arbitral tribunal;

    (d) The travel and other expenses of witnesses to the extent such expenses are approved by the arbitral tribunal;

    (e) The costs for legal representation and assistance of the successful party if such costs were claimed during the arbitral proceeding, and only to the extent that the arbitral tribunal determines that the amount of such costs is reasonable;

    (f) The fees of SPICAC administration.

    Article 39

    Amount of the fees of the Arbitral tribunal

    1. The fees of the arbitral tribunal shall be reasonable in amount, taking into account the amount in dispute, the complexity of the subject matter, the time spent by the arbitrators and any other relevant circumstances of the case.

    2. The arbitral tribunal in fixing its fees shall take the schedule of fees of the Regulation on Arbitral Costs of SPICAC into account to the extent that it considers appropriate in the circumstances of the case.

    3. In the case referred to in paragraph 2, when a party so requests the arbitral tribunal shall fix its fees only after consultation with SPICAC which may make any comment it deems appropriate to the arbitral tribunal concerning the fees.

    Article 40

    Allocation of Costs Among the Parties

    1. Except as provided in paragraph 2, the costs of arbitration shall in principle be borne by the unsuccessful party. However, the arbitral tribunal may apportion each of such costs between the parties if it determines that apportionment is reasonable, taking into account the circumstances of the case.

    2. With respect to the costs of legal representation and assistance referred to in article 38, paragraph (e), the arbitral tribunal, taking into account the circumstances of the case, shall be free to determine which party shall bear such costs or may apportion such costs between the parties if it determines that apportionment is reasonable.

    3. When the arbitral tribunal issues an order for the termination of the arbitral proceedings or makes an award on agreed terms, it shall fix the costs of arbitration referred to in article 38 and article 39, paragraph 1, in the text of that order or award.

    4. No additional fees may be charged by an arbitral tribunal for interpretation or correction or completion of its award under articles 35 to 37.

    Article 41

    Deposit of Costs into Arbitral Tribunal

    1. The arbitral tribunal, on its establishment, may request each party to deposit an equal amount as an advance for the costs referred to in article 38, paragraphs (a), (b) and (c).

    2. During the course of the arbitral proceedings the arbitral tribunal may request supplementary deposits from the parties.

    3. The arbitral tribunal shall fix the amounts of any advance deposits or supplementary deposits only after consultation with SPICAC, which may make any comments to the arbitral tribunal which it deems appropriate concerning the amount of such advance deposits.

    4. If the required advance deposits are not paid in full within 30 days after the receipt of the request, the arbitral tribunal shall so inform the parties in order that one or another of them may make the required payment. If such payment is not made, the arbitral tribunal may order the suspension or termination of the arbitral proceedings.

    5. After the award has been made, the arbitral tribunal shall render an accounting to the parties of the deposits received and return any unexpended balance to the parties.

    Article 42

    Deposit of Costs into SPICAC

    1. In accordance with the Regulation on Arbitral Costs, if SPICAC starts the proceedings it may request from each party to deposit an equal sum to cover the costs of SPICAC. During the arbitral proceedings, in accordance with the Regulation Arbitral Costs, SPICAC may require the payment of additional costs.

    2. If the requested advance payment is not paid in full in thirty (30) days after the request has been received,SPICAC shall send a notice to the parties so that one or another party may make the necessary payment in full. If the payment has not been made by either of the parties, SPICAC may resolve to suspend or to terminate the arbitral proceedings.

    3. After the arbitration award has been made SPICAC shall submit a report on the received amounts and repay any unused balance.

    Regulation on Arbitration Costs of the International Commercial Arbitration Court of ST. PETERSBURG

    1. Application

    This Regulation supplements the Rules of the Arbitration Court and is an integral part thereof. Parties submitting disputes to arbitration before the Court in accordance with its Rules shall be deemed to have agreed to be bound by its provisions. If the parties have chosen other arbitration rules to govern the arbitration and the Court functions as the appointing authority, this Regulation shall govern the calculation and imposition of the costs of the arbitration and the parties shall be deemed to have agreed to be bound by its provisions, except to the extent the arbitration rules chosen by the parties are inconsistent with this Regulation.

    2. Security

    a. The Court shall require the posting of security by the parties to cover the Costs of the arbitration (as defined in Article _ (sic) of the Rules). In exceptional cases the Court may waive the imposition of security.

    b. After a claim is filed the Court shall determine the amount of security needed and send the parties notice thereof together with payment instructions. The amount of security shall be established based on the anticipated Costs calculated in accordance with this Regulation.

    c. The security shall be paid in two equal installments. Each installment shall be paid in equal shares by the claimant and the respondent. The first installment shall be paid following the filing of the claim and before the Court refers the matter to the arbitrator(s). The second installment shall be paid at a time set by the Court in agreement with the arbitrator(s).

    d. The filing of a counterclaim or a new claim shall result in the imposition of additional security.

    e. A party who has not paid its security may not participate in the proceedings, and in particular may not file a counterclaim or additional claim. If a claim was already filed, the claim to which the party's unpaid share of security relates shall be deemed withdrawn. If a party fails to pay security, the other party may do so, in which case the arbitrator(s) may render an award based on the evidence and arguments submitted by the paying party.

    f. If the arbitrator(s) requests the services of an expert, the expert shall commence work only after payment by the parties, or one of them, of security set by the Court to cover the expert's expenses.

    3. Arbitrators Fees and Expenses

    a. Arbitrators' Costs shall consist of arbitrators fees and reasonable travel, accommodation and other expenses incurred by the arbitrators in performing their duties as arbitrators. These Costs shall be approved by the Court based on the proposal of the arbitrator(s) and included in the arbitration award.

    b. The arbitrators' fees shall be reasonable and based principally on the amount in dispute (taking into account all claims and counterclaims), but shall also take into account the amount of time spent by the arbitrators (using an hourly rate), the complexity of the case, and other relevant circumstances. The following scale of fees for an arbitrator shall be used as a guideline but is not binding:


    Amount in dispute (US$)

     
    Range of fees as percentage of amount in dispute

     
     
    minimum

     
    maximum

     
    To 50.000

     
    $2.000

     
    10%

     
    Up 50.001 -- 100.000

     
    2%

     
    6%

     
    Up100.001 -- 500.000

     
    1%

     
    3%

     
    Up 500.001 -- 1.000.000

     
    0.5%

     
    2%

     
    Up1.000.001 -- 5.000.000

     
    0.2%

     
    1.5%

     
    Up 5.000.001 -- 10.000.000

     
    0.1%

     
    0.3%

     
    Up10.000.001 -- 50.000.000

     
    0.05%

     
    0.15%

     
    Up 50.000.001 -- 100.000.000

     
    0.02%

     
    0.1%

     
    Over 100.000.000

     
    0.01%

     
    0.05%

     
    4. Administrative Expenses

    a. The Court shall establish and collect from the parties administrative Costs from the Parties to cover the cost of the proceedings and the Court's operations. Generally, the administrative Costs shall be set as a percentage of the amount in dispute (considering all claims and counterclaims) in according to the following guideline, but the amount can be set differently if a matter requires substantially more or less work than normal.


    Amount in dispute (US$)

     
    Administrative Cost

     
    Up to 100.000

     
    $1000 plus 2% of amount over $50.000

     
    100.001 to 500.000

     
    $2000 plus 1.5% of amount over 100.000

     
    500.001 to 1.000.000

     
    $8.000 plus 1% of amount over $500.000

     
    1.000.001 to 5.000.000

     
    $13.000 plus 0.5% of amount over $1.000.000

     
    5.000.001 to 10.000.000

     
    $33.000 plus 0.2% of amount over $5.000.000

     
    Over 10.000.000

     
    $43.000 plus 0.1% of amount over $10.000.000

     
    b. The claimant shall pay at the time of filing its claim US$ 1000 (or the ruble equivalent" thereof at the official exchange rate on the date of payment) to cover administrative expenses of the Court. Such amount shall be credited against the first installment of security paid by the claimant pursuant to Article 2.c of this Regulation.


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    1 In Russian treteisky - ed.