- Arbitral Award
- Ad hoc arbitration
- Carl A. Sax v City of Saint Petersburg
STATE CONTRACTS - LONG-TERM CONTRACTS - DEVELOPMENT AGREEMENT - BETWEEN A RUSSIAN LOCAL GOVERNMENT AND A UNITED STATES INVESTOR – REFERENCE TO UNIDROIT PRINCIPLES IN SUPPORT OF THE LAW APPLICABLE TO THE SUBSTANCE OF THE DISPUTE (RUSSIAN LAW)
RATE OF INTEREST – REFERENCE TO ART. 7.4.9 UNIDROIT PRINCIPLES IN SUPPORT OF ART. 395 OF THE RUSSIAN CIVIL CODE
In a dispute between a US investor and the City of Saint Petersburg, arising from a series of agreements relating to the development of a new passenger terminal at the Saint Petersburg Airport, the law chosen by the parties as the law applicable to the substance of the dispute was “Appropriate Russian law, treaties and international law”.
One of the issues addressed by the Arbitral Tribunal was the applicable interest rate. In its award the Arbitral Tribunal referred to Art. 7.4.9 of the UNIDROIT Principles in support of Art. 395 of the Russian civil code according to which the applicable rate of interest is to be determined according to the jurisdiction where the prevailing party resides.
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