Maxim Ali has told Novy Prospect whether registering a company in an “unfriendly” country affects the court’s position

After the list of “unfriendly” countries appeared in March of this year, a number of foreign companies faced the fact that this measure began to be used by Russian counterparties as an excuse for not fulfilling obligations to a partner. Initially, the courts sided with the compatriots, recognizing the claims of “unfriendly” companies as an abuse of right. However, at the end of April this practice came to naught. Later the Supreme Court confirmed that the Presidential Decree on “unfriendly acts” does not constitute grounds for abuse of rights of foreign companies by domestic businessmen.

According to Maxim Ali, Partner, Head of IP/IT practice at Maxima Legal, Russian courts are quite formal. “And this works both ways: if the law does not directly restrict the rights of companies from “unfriendly” countries, the courts are unlikely to do so on their own initiative. But this does not mean that such foreign companies can live as easily as before. In particular, they do not always manage to get court decisions enforced,” the expert explained to Novy Prospect online edition.

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