News date: 18 June 2014
Ilyashev & Partners’ Senior Partner Roman Marchenko was selected as a member of the International Chamber of Commerce’s Financial Institutions and International Arbitration Task Force. The task force’s focus will be to boost the efficacy and cost-effectiveness of dispute resolution procedures and to study how international arbitration can be made more attractive for banks and financial institutions. It will also deal with various issues of international arbitration and alternative dispute resolution.
Mr. Marchenko is the only task force member from Ukraine. Today, financial disputes are one of the most rapidly growing areas of commercial arbitration.
For years, banks preferred English and US courts for their predictability and professionalism.
The share of financial cases at major arbitration centres did not exceed 3-5%. However, the advance of financing to Southeast Asia, Eastern Europe, Russia and South America has undermined the role of English and US judgments as an effective tool of dispute resolution, since their recognition and enforcement outside Europe and the US is way challenging and at times barely impossible. Quite oppositely, arbitration awards are susceptible of enforcement in over 140 countries around the world. This leads to the increasingly wide use of arbitration by players in the financial sector. 2012 saw the launch of P.R.I.M.E. Finance, a specialized body that includes at its core a panel of renowned experts in financial arbitration. International Swaps and Derivatives Association (ISDA) released the Arbitration Guide providing guidance on the use of its model arbitration clauses are with ISDA Master Agreements utilized by most traders.
Since, at least from now, Ukrainian businesses taking advantage of international financing rather borrow than lend, this system has not yet enjoyed wide interest in Ukraine. However, we are following the developments as our practice is connected with international lending to a large extent.
The International Chamber of Commerce (ICC) is an independent non-profit business organization representing the largest international businesses, associations and companies from over 140 countries around the world. ICC aims to promote the development of international trade and address the latest business issues.