Arbitration in Moscow

Abstract

east-west trade is still primarily conducted along traditional lines, by the sale and purchase of goods and services. In the last 15–20 years, however, East-West trade has taken on a more complex character. During this period the Soviet government and other East European governments have shown a constantly increasing interest in concluding different forms of agreements of scientific, technical and industrial cooperation with Western governments and in encouraging such agreements between their foreign trade entities and Western business firms. This period has also seen the emergence of joint venture legislation in many East European countries, including Bulgaria, Hungary and Poland. One of the most interesting developments in East-West trade today is the recently declared interest by the Soviet Union to discuss the establishment of joint ventures between Western companies and Soviet entities on Soviet soil.1 In recent years trade between the countries of CMEA2 and the West has thus become increasingly concerned with new types of business arrangements which are quite different from the relatively simple, traditional import-export transactions. These newer transactions involve many more complex legal aspects than traditional import-export dealings and often require long periods of time to complete. For example, some of these transactions require contractors to design and build an entire factory on a turn-key basis. There are a number of uses for arbitration also in these newer forms of contractual arrangements in East-West trade. ### (a) Settlement of disputes in East-West trade Nowadays it is not an exaggeration to say that arbitration clauses are standard practice in virtually all contracts between Western corporations and East European foreign trade organisations. Western businessmen and lawyers have traditionally preferred arbitration in international trade disputes in order to avoid the uncertainties and complications associated with appearing before foreign courts. In the Western countries long established institutions exist which have extensive experience in conducting arbitrations arising …