- Commercial Court of Brest Region
SALES CONTRACT - BETWEEN BELORUSSIAN COMPANY AND RUSSIAN COMPANY - GOVERNED BY CISG
RATE OF INTEREST TO BE DETERMINED BY APPLICABLE DOMESTIC LAW (BELORUSSIAN LAW) - REFERENCE TO ARTICLE 7.4.9(2) OF THE UNIDROIT PRINCIPLES AS "INTERNATIONAL TRADE USAGES" APPLICABLE ACCORDING TO ART. 1093 (1) OF BELORUSSIAN CIVIL CODE
Plaintiff, a Russian company, concluded a contract of sale with Defendant, a Belarussian company. Plaintiff duly performed its obligations under the contract, while Defendant failed to pay the price.
Plaintiff claimed payment of the main debt, interest and penalty, set in the contract at 0,05% per day.
The Court held Plaintiff entitled to interest under Art. 78 of the CISG. As to the applicable rate of interest, the Court recalled that according to the Plenum Resolution of Supreme Commercial Court of Belarus Republic of 7 May 2001 it was to be determined by the applicable domestic law. It then referred to Art 1093 (1) of Civil Code of Belarus according to which in contracts with foreign elements international usages apply provided that they do not contravene the law of Belarus and concluded that since in the case at hand the currency of payment was foreign the rate of interest should be determined according to “principles of international commercial contracts” and in this context quoted the full text of Art 7.4.9 of UNIDROIT Principles.
In the case at hand the currency of payment was the Russian rouble and since the rates referred to in the first sentence of Art. 7.4.9(2) could not be established, the Court in accordance with the second sentence of the same article referred to the rate fixed by the law of the Russian Federation, i.e. the Central Bank of Russian Federation and awarded Plaintiff interest at that rate.
Original in Russian:
available at http://www.lawbelarus.com/repub2008/sub10/text10745.htm
Translation in English: