Final Arbitral Award rendered in 1999 in case 34/1998
Observations by Ivan Zykin
(1) Ex parte award.
(2) Law applicable to the interest rate; What rate applies if the banking rate relied upon “presently varies between 13 and 18 percent”?
(3) Claimed legal expenses reduced.
(1) Respondent has been duly informed of this arbitration, given the opportunity to plead its cause and received a summons to the oral hearing. Therefore, the failure of Respondent to appear in this arbitration does not prevent the Tribunal from rendering an award.
(2) Under Swedish private international law, a contract for sale of goods, which is executed in Russia, will be governed by Russian law. This relates also to the questions regarding interest. The interest rate to be applied in this case is 15.5 per cent.
(3) The compensation claimed appears reasonable except for the expenses for legal services [USD 21 000] which, taking into account the relatively limited complexity of this arbitration, can only be satisfied in the amount of USD 10 000.
Parties: Claimant: X, Seller (Russian Federation) Respondent: Y, Buyer