In Memoriam. Сборник воспоминаний, статей, иных материалов

S.L.: You know, when we were discussing about optional clause for Soviet and American parties’ contracts, and we finally came to agreement with American side, and Howard Holtzmann in particular, who was an excellent American lawyer, who represented the American party, we came to agreement that Sweden was a good place for arbitration for such contracts. And this optional clause should have been recommended to Soviet and American parties, when they make contracts. I remember Howard Holtzmann was smiling and said: “Okay, this is a concession from our side, from American side.” And I ask him: “Why?” “Well”, he said, “because Sweden is a socialist country. And you are a socialist country.” It was a joke, of course, and we did understand that Sweden was not a socialist country, like our own country, like Soviet Union. No, of course. But from our side we expected that we can knew almost for sure that arbitration in Stockholm would be impartial. In spite of the fact that parties to the contract, to the dispute, are from socialist country, Soviet Union, and from American country, capitalist country. Nevertheless we expected that arbitration should be appropriate in spite of the differences which existed. Why so? I cannot tell you why so. For me, very important were recommendations of Professor Keilin and Professor Usenko, who had experience in that field, and who educated me, that that was the situation, and you can expect, because of their own personal experience. That was very important for me. Otherwise, I’m not an expert about Sweden, except history, of course, and history was not always good for Russian and Swedish relations, many centuries ago. No, it was Sweden today. So that was our solution. Then, what was important for me also, that I met many Swedish lawyers in arbitration, also in international conferences and so forth. There was a feeling, for me, that we can rely on those people, when they act, and usually, they act as presiding arbitrators. There is, for instance, American arbitrator and Soviet arbitrator, and the presiding arbitrator, who knows the Swedish law, and we can expect that it would be so. But of course, you know, it is so, as a general approach, and in my experience, in my practice, as arbitrator in Sweden, I realized that this is true. But it does not exclude certain case, where the situation may be different. Except, from my point of view, maybe I’m not true in my appreciation, but it appears to me that there may be not appropriate award made in that or another case. There is always such a possibility, that is unavoidable, and if it is arbitration here in Moscow, I know for sure that certain awards are not appropriate from the standpoint of foreign arbitrator who participate here in Moscow as arbitrator. So such disputes arise. What is important then, and again, from my recent practice in Sweden: what is the position of the Swedish court? Because there is a possibility to appeal against the award before the Swedish Court of Appeal. Yes, Swedish Court of Appeal, how that court will act with regard to such a complaint against the award, that is very important thing. I’ll tell you… I hope I don’t speak to long?

M.B.: No. But could I ask, just before we leave the choice of Sweden. I just wonder whether the Soviet Union, did you approach other countries for the same purpose? Were there alternatives to Stockholm that were discussed from the Russian point of view?

S.L.: Well, of course, now the situation is such that contracts concluded by Russian companies provide for arbitration in different countries. And now the situation has changed as compared with the situation during the Soviet period. Why? During the Soviet period there was principle of state monopoly of foreign trade. It means that Ministry of Foreign Trade controlled the contracts, concluded by commercial companies, which were state companies. So it was very possible to insist, by the Ministry, that arbitration should be provided in that or another country. Depending on various factors. Now, it is a free market, and now contracts are concluded by Russian companies at their own will, and their own choice, and arbitration is in various countries, in SCC, in Paris, in London Court of arbitration, and in other countries in Beijing and so on. I now participate in arbitration in various countries. I arrived two weeks ago from Bishkek, which is the capital of Kyrgyzstan. Arbitration is provided in Bishkek. That is an agreement between the parties nowadays.