Updates – Page 8 – NAVICUS.LAW

In January 2013 a number of major amendments in the Russian legislation regarding the NSR entered into force. Amendments were made to the Russian Merchant Shipping Code, Federal Laws and by-laws, providing for new Rules of Navigation of the Northern Sea Route and the establishment of a new Northern Sea Route Administration.

Despite the legislative efforts to promote commercial navigation on the Northern Sea Route one still has to be prepared to deal with such major factors as generally harsh weather conditions, remoteness of the region, lack of reliable infrastructure (safe ports, repair yards, drydocking facilities) the limited number of icebreakers, and thus limited search, rescue and salvage resources. In such conditions the commercial insurance of both H&M and P&I risks in the Arctic region will remain a challenge for both P&I Clubs and underwriters for many years to come.

The State Commercial Court of the city of Moscow has ruled to enforce a judgment of a New York State District Court in the absence of a treaty between Russia and the USA covering issues of legal assistance/mutual recognition and enforcement of judgments.

Even though the amount of the judgment in the case at hand was relatively small, around USD 560,000, the importance of its recognition in Russia should not be underestimated. The enforcement of the judgment in itself lays the foundations of practice of reciprocity between the courts of Russia and the US; it also marks a certain change of attitude to foreign judgments from the side of the Russian court system and finally, it encourages those who may be seeking to enforce foreign judgments in Russia but have been prevented from it by the absence of the bilateral treaty which directly provides for such possibility.

Tags: Court, District, Judgment, New York, State Commercial, US

The Northern Sea Route – A major change in regulation

Russian State Commercial Court Enforces a Judgment of a US NY District Court