May 29, 2005

1. RUSSIAN INSURANCE SUMMIT ResolutionofdisputesinvolvinginsurancecompaniesinandoutsideofRussia: Acomparativeoverviewoftheadvantagesanddisadvantagesofvariousoptionsfordisputeresolution May 29, 2005 Leila Litvinova Senior Associate, Moscow OfficeCo-Chair, Russia Insurance Practice Group Tel.: 7-095-737-5000Fax: 7-095-737-5050 INFO@LLGM.RUWWW.RUSSIANLAWS.COM

2. Legal Needs of The Russian Insurance Market • Intensive and extensive growth of the Russian insurance market • International nature of insurance and reinsurance industry • Partner/shareholder disputes • Disputes between various market players • Unsatisfied customers’ claims

3. I. OptionsforcommercialdisputeresolutioninRussia: statecourts, commercialarbitration, ADR

4. Options for Commercial Dispute Resolution • State arbitration (arbitrazh) courts • Commercial arbitration • International Arbitration • Domestic arbitration • Alternative Dispute Resolution

5. II. Procedural issues: arbitrazhlitigation,civilcourtlitigation, commercialarbitration (internationalanddomestic)

6. Disputes: Procedural Issues • Arbitrazh Litigation – Arbitration Procedure Code • Civil Court Litigation – Civil Procedure Code • Limited scope for private arbitration • Mandatory Russian law rules; limited scope for choice of law

7. III. Dispute Resolution Approaches, Including Commercial Arbitration

8. Efforts to Resolve a Dispute Amicably • general requirements (to undertake best or reasonable efforts) • special conciliation procedure set in the contract (parity commissions, appointment of an expert, etc.) • mediation

9. Practical Issues to Consider • costs • time • enforceability of an arbitration award or court judgment • enforcement of an arbitration award (additional time and expenses)

10. Speed and Complexity of Proceedings (alternative arbitration proceedings) • small claims procedure • Fast, low cost procedure • full-scale arbitration process

11. Interpretation of a Dispute Resolution Clause • if an arbitration clause (or agreement) is absent (litigation or arbitration) • if an arbitration clause or agreement is invalid • if an arbitration clause is vague (any need to argue over jurisdiction?) • place of dispute proceedings

12. Specifics of Arbitration Clause Application • exclusive language and permissive language • the possibility of a multiparty dispute • potential/necessary intervention of local courts (statutory requirements, interim relief, etc.) • no incorrect reference to arbitration rules

13. The Significance of International Treaties • several alternatives given to the parties in an arbitration clause • applicability of international treaties • the law that determines the legal authority of the parties

14. IV. Scope of Dispute Resolution

15. Issues to Be Resolved • keeping the arbitration clause as broad as possible (excluding for matters that cannot be submitted to arbitration) • the jurisdiction • the law regulating procedure for the arbitration • if there is a conflict between applicable substantive laws, the law under which said conflict is to be resolved

16. When to Commence Litigation/ Arbitration • all pre-arbitration efforts have been exhausted • all commercial issues have been considered • a full legal review has been completed

17. Survey and analysis of current dispute resolution trends in Russia • Amicable settlements (reasons for success) • International vs Domestic •  Russian courts: practice in the making

18. Court Practice – Also Consider: • Specifics of Russian Court Practice • Fighting corruption at all levels • Litigation as a “negotiation” tool: greenmail • Security measures: how they can be abused

19. RUSSIAN INSURANCE SUMMIT QUESTIONS? INFO@LLGM.RUWWW.RUSSIANLAWS.COMTel.: 7-095-737-5000Fax: 7-095-737-5050

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