INTRODUCTION
The registration and enforcement of a Russian judgment in the Republic of Cyprus is regulated by the provisions of the Bilateral Agreement, between Cyprus and the Russian Federation (Law 172/86) (“the Treaty”).
The most important provision for enforcement is Article 27 of the Treaty, which provides that:
a) The party which seeks enforcement of a Russian judgment in the Republic of Cyprus shall make his request to the judicial authority of Russia.
b) In the event that the party which seeks enforcement of a Russian judgment in the Republic of Cyprus, is residing in Cyprus, then such party is entitled to apply directly to the Cyprus Courts for enforcement and not through the judicial authority referred to in Article 27 (2) of the Treaty.
PRACTICAL ADVANTAGES OF APPLICANT BEING A RESIDENT OF CYPRUS
The practical advantages of having the right of direct access to the Cyprus Courts for enforcement of Russian judgments, are numerous, some of which are the following:
(i) If the applicant applies directly to the Cyprus Courts, will be able to request for ex parte interim relief, to secure the judgment debt. In the event of filing of an application of enforcement, through the judicial authority, such a possibility, in reality does not exist.
(ii) The right of direct access, secures a speedier procedure, than the process, through the judicial authority.
IMPORTANT NOTE
On the basis of inter alia the above we advise that, in order to by -pass the disadvantages of the applicability of Article 27 (1) of the Treaty, a Russian Claimant before the filing of his action, before Russian Courts, against his debtor, he shall assign such a claim to a Cyprus company, which shall be used as a Plaintiff of the Russian action, thus securing that the Cypriot company, as a judgment creditor, under the Russian judgment, will be able to rely on Article 27 (2) of the Treaty, and to have a right of a direct access to the Cyprus Courts, for seeking registration and enforcement of the Russian judgment.
POSSIBILITY OF OBTAINING INTERIM RELIEF IN THE CONTEXT OF APPLICATION FOR REGISTRATION AND ENFORCEMENT
An applicant, seeking the registration and enforcement in the Republic of Cyprus of a Russian judgment, under the Treaty -(provided that the applicant/judgment creditor is resident in Cyprus)- is entitled to apply for the issue of the following inter alia interim relief:
a) Freezing orders, blocking assets held by the judgment debtor;
b) Chambra injunctions, blocking assets beneficially owned by judgment debtor, but held into the name of third parties;
c) Discovery or Norwich Pharmakal orders, ordering third parties (Banks, Service providers etc) to disclose information and documents in order to assist the Claimant, to prove and plead his case, to trace assets, to identify other wrongdoers etc;
d) Gagging orders, blocking a third party (i.e. Bank, Service provider) not to alert the defendant, about the commencement of the legal proceedings by the Claimant;
e) Appointment of an interim receiver to assist in the preservation of the assets blocked by an injunction; and
f) Appointment of a receiver by way of equitable execution, in order to assist in the execution of the judgment, against the assets, which are beneficially owned by the judgment debtor.
For further information on this topic please contact
Mr. Soteris Pittas( spittas@pittaslegal.com ) at SOTERIS PITTAS & CO LLC,
by telephone (+357 25 028460) or by fax (+357 25 028461)
The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.
