"Today we will try to figure out why in the settlement of international economic disputes Russia is among the most backward countries, despite the fact that our school of law has always been a highly skilled" said the expert of the Analytical Center Professor Alexander Vylegzhanin opening the roundtable " Global practice of international economic disputes settlement”.
In the field of international disputes, Russia has a huge potential, but it is not implemented yet. "Our task is to give general information on how the international disputes settlement on specific economic activity areas is conducted. And then we try to understand what is to be done to improve this situation, so that it would not lead to negative consequences ", said the expert.
While speaking about international investment disputes settlement, the Professor of the Department of International Law of MGIMO University of Russia Dmitry Labin noted that today there are 568 known investment disputes, and by their number the Russian Federation is on 17th place. From 274 disputes resolved - 118 decisions were made in favor of the state, 85 decisions in favor of an investor, and every fourth was closed with a settlement agreement (71 cases).
"Taking into account the increasing level of investment disputes litigation procedures unpredictability there is a long-felt need in revaluation of the contemporary international system of its settlement, as well as evaluation of various possibilities of its reforming and making informed decisions", said Mr. Labin. Investment disputes’ settlement system update will make a significant contribution to the progressive development of international investment law, according to the expert. He also outlined some of the shortcomings of the international dispute settlement system: illegality and opacity, inconsistent and erroneous decisions, bias and excessive incentives, extravagant nature of trials.
“Russia as a plaintiff should seek allies in disputes with major trading partners such as the EU, the USA, Japan, Canada”, said the Associate Professor of MGIMO University of Russia Ilya Rachkov. “For example, in the case on energy adjustments such allies could be Argentina or Indonesia, as they have a similar case in the Global Payment System. It makes sense to closely monitor the actions of other countries in international trade, and as a potential respondent the state should develop a system of early disputes warning without bringing them to the consideration of the Global Payment System, considers the expert, adding that Russia as a third party should be more involved in disputes expressing its position on the problem.
In addition to questions on international investment and trade disputes settlement experts considered the international customs law.