Representing the client in debt recovery proceedings initiated against a foreign legal entity in a court of foreign jurisdiction

Client:Russian industrial company
Opposite party:Turkish company


The Russian industrial company signed a contract with the Turkish company to supply equipment in Russia for 3 years in the amount of US $ 3 million. The Turkish company received an advance, but did not fulfill their commitments and ignored the Russian company. The CG represented the interests of the client in a legal proceeding (lawsuit) in the Commercial court of the city of Istanbul, demanding the return of US $ 600 thousand.

The case

Initially, the client alone won the trial in the Arbitration court of the Russian Federation. However, the writ of execution of the Russian court has no effect in Turkey, which the client was not aware of. In addition, within the framework of this trial, the requirements of international conventions on judicial proceedings were not met, which aggravated the position of the client in terms of the Turkish legislation. The CG provided legal support on "a turnkey basis" regarding the representation of the interests and satisfaction of the claims through an international network of partnerships, including  authorized lawyers in Istanbul.

Why is it of importance?

Without being complied with the requirements of the court proceedings with a foreign legal entity, the decision of the court of the Russian Federation is illegal. As a result, the client loses time and can not meet their material requirements. In addition, there are negative consequences (penalty) under currency legislation in the amount of 75-100% of the transaction amount, i.e., the client would be required to pay to the budget of the Russian Federation a further US $ 800 thousand (equivalent in rubles) for violation of Art. 19 of the Federal Law "On Currency Regulation and Currency Control".


Head of International Taxation

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