On the Competence of Russian Arbitration Courts in Cases Involving Foreign Persons

The paper attempts to identify the features of determining the competence of arbitration courts in the Russian Federation in cases involving foreign persons. firstly, the features of the definition of foreign persons, on whose exact depends the possibility of providing judicial protection in case of violation of their rights and legitimate interests in the field of business and other economic activities. Secondly, an important criterion for the legal personality of foreign and international organizations engaged in entrepreneurial activity has been formulated. Thirdly, the analysis of the main criterion for referring a dispute involving foreign persons to the jurisdiction of the arbitration court of Russia - the criterion of connection with the territory of Russia. Fourthly, the paper notes that in cases where foreign persons who participate in a case before an arbitral Tribunal are located or reside outside the borders of Russia, they acquire the right to be informed of the proceedings through the determination of the arbitral Tribunal. Moreover, the notification is carried out by sending an order to the institution of justice or other competent authority of a foreign state. Fifth, the paper analyzes the exclusive competence of arbitration courts, which can be limited only by international treaties of the Russian Federation. Sixthly, it is noted that the evolving inter-state relations, legislation and judicial practice of most States demonstrate a departure from the principle of absolute judicial immunity of a foreign state in favor of functional immunity, distinguishing the activities of a state as a subject acting as a carrier of power, and as a “trading entity’.