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Chapter 4 - Assets Available for Execution - Enforcing Foreign Arbitral Awards Against Russian Entities

Author(s): 
Kaj I. Hobér
Page Count: 
3 pages
Published: 
February, 1999
Jurisdictions: 
Russia
Practice Areas: 
Enforcement of Arbitral Awards
Author Detail: 

Kaj Hobér is a Partner at Mannheimer Swartling in Stockholm and Professor of East European Law at Uppsala University.

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Assuming  that  a  Western  party  has  been  successful  in  enforcement  proceedings  before  a Russian court and has obtained a writ of execution, the crucial question is which assets of the Russian counterparty are available for execution. In discussing this question, a distinction must be drawn between FTOs established under the state monopoly of foreign trade and continuing to function in their old form, on the one hand, and FTOs transformed into joint stock companies, on the other. 
 
(A)    Foreign Trade Organizations 
 
The assets of a FTO are carefully segregated from those of the state and of other state enterprises. For example, Article 33 of the RSFSR Civil Code explicitly stipulates that the state is not liable for the obligations of other state organizations. Each FTO is initially allocated capital that it may use for any purpose consonant with its charter, the amount of which is specified in the charter. The same basic rules of segregation apply to assets of FTOs that have been transformed into  joint  stock  companies.  Joint  stock  companies  are  regulated  by Decree  No.  601,  adopted  on December 25, 1990 by the RSFSR Supreme Soviet ("Decree 601"). 

 

Table of Contents: 
Chapter 4   Assets Available for Execution (A) Foreign Trade Organizations (B) Joint Stock Companies