(1) Is "the Arbitration Court in Stockholm” a reference to ad hoc or institutional arbitration?

(2) Refusal by a party to participate in the proceedings.

Procedure: (3) Value added tax on the arbitrators' fee.

Findings:

(1) The word "arbitration" in the Russian language can mean both institutional and ad hoc arbitration. When written with a capital "A" and in the context, it refers to an institutional arbitration according to the Rules of the Arbitration Institute of the Stockholm Chamber of Commerce.

(2) Failure of a party to appear at a hearing or otherwise to comply with an order of the Arbitral Tribunal will not prevent the Arbitral Tribunal from proceeding with the case and rendering an award.

(3) It is doubtful whether the decision of the European Court of Justice, rendered on 16 September 1997, relating to value added tax on arbitrators' fees has effect in Sweden. The arbitrators decide that the SCC Institute shall withhold an amount corresponding to the value added tax from the arbitrator’s fee.

Parties: Claimant: X, Contractor (Cyprus) Respondent: Y, Owner

(Russian Federation)

Place of arbitration: Stockholm

Nationality of arbitrators:

Chairman: Swedish

Arbitrator: Swedish