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COMPARING THE RATES! COURT FEES FOR COLLECTION OF INTERNATIONAL DEBTS!

As practice shows, counterparties, when concluding international agreements (if lawyers are not involved in the development of agreements), practically do not attach importance to the jurisdiction of dispute resolution. Obviously in vain!

The information will be interesting and useful to foreign creditors who have debtors from Ukraine, Belarus and Russia.

IN MOST CASES!

Such “inattention” is fraught with the fact that the claim (if the problem was not resolved amicably / by negotiation and “passed” to the court) will be brought, as a general rule, to the economic / arbitration court at the location of the defendant.

In such a situation, the following amounts will have to be spent on legal costs:

  • When collecting a debt from a Ukrainian debtor of a legal entity – 1.5% of the amount owed, but not less than UAH 2 270.00. and no more than UAH 794,500.00.
  • When collecting a debt from a Russian debtor of a legal entity, depending on the size of the debt obligation:
  • Up to 100,000 RUB – 4% of the claim price, but not less than 2,000 RUB.
  • From 100 001 RUB up to 200,000 RUB – 4,000 RUB + 3% of the amount exceeding 100,000 RUB.
  • From 200,001 RUB up to 1,000,000 RUB – 7,000 RUB + 2% of the amount exceeding 200,000 RUB.
  • From 1,000,000 RUB up to 2,000,000 RUB – 23,000 RUB + 1% of the amount exceeding 1,000,000 RUB, and over 2,000,000 RUB – 33,000 RUB + 0.5% of the amount exceeding 2,000,000 RUB, but not more than 200,000 RUB.
  • When collecting a debt from a Belarusian debtor of a legal entity, depending on the amount of the debt:
  • Up to 2 900 BYN – 725 BYN;
  • From 2,900 to 29,000 BYN – 5% of the claim price, but not less than 725 BYN;
  • From 29,000 to 290,000 BYR – 1,450 BYN + 3% of the amount exceeding 29,000 BYN;
  • From 290,000 and more – 1% of the claim amount, but not less than 9280 BYN.

BASED ON THE INDICATED RATES

Examples with specific numbers!
For filing a claim for the collection of 15,000.00 USD, the lender will pay a court fee in Ukraine – about 225 USD, in the Russian Federation – about 320 USD, and in the Republic of Belarus – about 670 USD.
For filing a claim for the collection of 55,000.00 USD, the creditor will pay a court fee in Ukraine – about 825 USD, in the Russian Federation – about 576 USD, and in the Republic of Belarus – about 1870 USD.
A claim to recover a debt in the amount of 140,000.00 USD will cost the creditor in Ukraine – about 2100 USD, in the Russian Federation – about 1000 USD, and in the Republic of Belarus – about 3535 USD.

STATISTICS OF LEGAL PRACTICE!

In most cases, the parties to foreign economic agreements provide for the jurisdiction of dispute resolution in international commercial arbitration at the chambers of commerce and industry of the respective countries.

Specifically, these are the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry, the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation and the International Arbitration Court at the Bel Chamber of Commerce and Industry.

NUMBERS AGAIN!

When asked whether debt collection abroad is financially or economically beneficial, each creditor can answer for himself.

To do this, you should familiarize yourself with the rates of fees for the consideration of claims for the collection of international debts.

For debt collection from debtors of legal entities

in the International Commercial Arbitration Court at CCI of Ukraine

the creditor must pay court fees for the claim in the amount, for example:

15,000 USD, the fee is 2280 USD if the case is heard by one arbitrator, or 2700 USD if the case is heard by three arbitrators. 55,000 USD, the fee is 4120 USD if the case is heard by one arbitrator, or 5000 USD if the case is heard by three arbitrators. 140,000 USD, the fee is 6520 USD if the case is heard by one arbitrator, or 8000 USD if the case is heard by three arbitrators.

 

For debt collection from debtors of legal entities

in the International Commercial Arbitration Court at CCI of Russia

the creditor must pay court fees for the claim in the amount, for example:

15,000 USD, the fee is 3900 USD if the case is heard by one arbitrator, or 4625 USD if the case is heard by three arbitrators. 55,000 USD, the fee is 7840 USD if the case is heard by one arbitrator, or 9550 USD if the case is heard by three arbitrators. 140,000 USD, the fee is 13720 USD if the case is heard by one arbitrator, or 16900 USD if the case is heard by three arbitrators.

 

For debt collection from debtors of legal entities

in the International Commercial Arbitration Court at CCI of Belarus

the creditor must pay court fees for the claim in the amount, for example:

15,000 USD, the fee is 910 USD if the case is heard by one arbitrator, or 1300 USD if the case is heard by three arbitrators. 55,000 USD, the fee is 2044 USD if the case is heard by one arbitrator, or 2920 USD if the case is heard by three arbitrators. 140,000 USD, the fee is 4060 USD if the case is heard by one arbitrator, or 5800 USD if the case is heard by three arbitrators.

“IMPORTANT! The number of arbitrators is determined by the arbitration clause fixed in the agreement of the parties or the corresponding provision about these CCIs, if there is no clause in the agreement.”

The above shows that a commercial court in Russia is the most expensive. Obviously, this circumstance discourages foreign creditors from initiating legal proceedings! It is also obvious that such a state of affairs for unscrupulous debtors is an excellent opportunity not to pay the bills.

THERE ARE OTHER NUANCES!

Commercial arbitration of any country considers cases quickly! An indisputable fact, but …

Obtained the ICAC decision is not the final! The fact that the creditor has this document in his hands does not guarantee the receipt of the debt.

The next step is to obtain a writ of execution for the enforcement of the ICAC decision, and this is another problem.

Why? Let’s look at an example! Thus, in an ordinary court, a writ of execution is issued by the court that considered the case, after the entry into force of the decision. In the case of the ICAC, you must separately apply to the ordinary court at the location of the defendant with an application for the issuance of a writ of execution.

It would seem that everything, but no! This procedure is a separate mini-trial, which means that …

An experienced debtor’s lawyer, using legal loopholes, can drag out the process almost indefinitely, or in general – achieve a refusal to issue a writ of execution.

So what happens? A foreign creditor has every chance to get a decision in the same time frame as in a local court, only it will cost more and more problems will have to be solved.

HIGHLY RECOMMENDED!

For foreign clients to carefully prepare foreign economic contracts – when drawing up, pay attention not only to the conditions for fulfilling obligations and checking future partners, but also to the conditions of potential litigation!

P.S. “The rates are valid as of 01.11.2021 for the courts of first instance.”

01.11.2021

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