Costs of the Arbitration - Chapter 18 - Arbitration Law of Russia: Practice and Procedure
Mr. Khodykin holds a Ph.D in Law and, from 2005 to 2012 he was an associate professor at the Moscow State Institute of International Relations (MGIMO), in addition to being in private practice.
Recognised as a rising star by Chambers & Partners, Mr. Khodykin is a frequent speaker at seminars and conferences and has authored numerous publications on international commercial arbitration and conflict of laws.
He has acted as arbitrator in cases under the ICC Rules and the Rules of the Court of Arbitration for Sport at the Russian Olympic Committee. Based in London, Mr. Khodykin advises on a wide range of litigation and arbitration matters, including commercial cases, repossession of aircraft, real estate litigation, corporate disputes and oil and gas industry cases. Mr. Khodykin has represented a broad range of clients in national and cross-border matters, including matters before the LCIA, ICSID and the International Commercial Arbitration Court at the Russian Federation Chamber of Commerce and Industry. He has experience litigating cases before various Russian courts, including the Russian Federation Constitutional Court, the Supreme Arbitrazh Court (the highest judicial authority in Russia for commercial courts) and the Supreme Court.
The Arbitration Act does not regulate in detail the issue of the arbitration's costs. This issue is usually governed by the rules of institutional arbitrations and/or by the agreement of the parties and arbitrators.
For ICAC proceedings it is governed, inter alia, by the schedule of arbitration fees and costs annexed to the ICAC Rules (ICAC Costs Schedule). For MAC proceedings it is governed by a separate schedule (MAC Costs Schedule).
Usually, costs in the context of arbitration are divided into two broad categories: arbitration fees and legal costs. These categories are dealt with below in turn.
Unless the parties agree otherwise,1 the arbitral tribunal must award costs on the general principle that costs follow the event, i.e. that the successful party will be entitled to its costs subject to the caveats described below.
18.1. COSTS OF ADMINISTRATION BY AN ARBITRATION INSTITUTION
Again, costs of administration by an arbitration institution are not governed by the Arbitration Act but by the institution's rules. According to Section 3(5) of the ICAC Costs Schedule:
“Fees due to the arbitrators, reporters, the ICAC President, and members of the ICAC Presidium will be paid out of the arbitrator’s fee and will be fixed in accordance with the Schedule of Fees and Costs of the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation.”
COSTS OF THE ARBITRATION
18.1 Costs of the Administration by an Arbitration Institution
18.2 Arbitrators´ Fees
18.3 Counsel´s Fees
18.4 Deposits or Advances for Costs or Fees
18.5 Time and Form of the Decision on Costs