The Russian Federation did not sign a Protocol amending the Convention for 27th May 1967

The Civil Code of the Russian Federation (part II, chapter 40), adopted in December 1995

The Regulations of automobile transport of the RSFSR, adopted in 1969

International carriage:

Convention on the contract for international carriage of goods by road (CMR) of 1956

Time Limit

In accordance with article 797 of the Civil code, an obligatory complaint must be sent to the carrier before submitting a claim against it to the court. The time limit for claims against the carrier is one year from the date specified by the special acts on types of transport.

Regulations provide that the claim may be submitted if no response has been received for the complaint or if the complaint has not been satisfied in full, so the time limit runs from the date when the response from the carrier with full or partial refusal to satisfy the complaint has been received or if no response has been received in 30 days.

For international carriage by road, provisions of the CMR Convention apply, with time limit of one year.

Limitations on Liability

Article 796 of the Civil code provides that the carrier shall be responsible for non-preservation (loss or damage) of the cargo unless it will prove that loss, waste or damage of cargo occurred due to the circumstance which the carrier could not prevent and elimination of which was not in its powers. The Regulations (in article 132) specify that such circumstances include: (a) consignor’s / consignee’s fault; (b) nature of the cargo, (c) defects of packaging (if those could not be noticed at the acceptance of cargo for carriage), (d) if the carrier has not been notified of the cargo’s special qualities which require special conditions of carriage; (e) if cargo moisture exceeded the standard level at acceptance. Article 133 of the Regulations additionally specifies that unless the claimant shall prove that loss or damage occurred due to the fault of the carrier, the carrier shall not be liable for such loss or damage in cases when: (a) the cargo has been delivered in a sound automobile / container with consignor’s seals and other safety markings intact, (b) loss or damage occurred due to natural causes in connection with carriage in open-top vehicles, (c) cargo was accompanied by consignor’s / consignee’s forwarding agent, (d) loss / deterioration of cargo was within the limits of standard natural loss/deterioration.

In case of loss of cargo or luggage, damages shall be paid in amount of value of the lost cargo or luggage. Such value is determined as invoiced or declared value of the cargo/luggage in question.

For international road carriage operations, limitations provided by article 23 of the CMR Convention shall apply (NB: Russia has not signed the 1978 Protocol), i.e. the carrier shall not be liable if it will succeed in proving that loss, damage or late delivery of cargo took place due to risks arising from: (a) use of open-top vehicles, if use of such vehicles has been agreed on and specified in the waybill; (b) absence, damage of packaging or unsatisfactory packaging when it is necessary; (c) removal, loading, placement or unloading of the cargo by consignor, consignee or their agents, (d) nature of certain kinds of cargo, (e) unsatisfactory markings, (f) carriage of animals. Limit of liability for cargo lost or damaged is 25 gold francs (10/31 g of 0.900 gold) per kilo of missing weight

Article 119. Circumstances, which serve grounds for the accrual of liability of the carrier consignor (sender), consignee (addressee), other legal persons or sole proprietors and the passenger upon the performance of carriage of passengers, cargo, luggage by rail are witnessed by commercial certificates, certificates of the general form and other certificates.

Article 120. Before filing a claim against the carrier in connection with the performance of carriage of cargo, a claim shall be at first addressed to the carrier.

The following have the right to bring a claim to the carrier in connection to the performance of transportation of a cargo:

consignee (addressee) or consignor (sender)

The right to bring a claim in connection to the performance of transportation of cargo is also granted to the insurer, who paid insurance compensation to the consignee (addressee) or consignor (sender) due to improper performance of obligations of transportation by the carrier. The procedure of bringing a claim by the insurer is similar to the procedure established in respect to bringing a claim by the consignor (sender) or consignee (addressee)

Article 124. The carrier is obliged to consider the received claim and notify in writing the applicant on the results of the consideration within thirty days from the date the claim is received.

Article 125. Claims to the carriers, which arose in connection with performance of transportations of cargo, luggage, can be filed in case of full or partial refusal of a carrier to satisfy the claim or in case of non receipt of the answer from a carrier on the claim and not earlier than the expiry of the term provided by article 124 of the present Charter, or if the answer of a carrier on the claim is received, before the expiration of such term.

The specified claims are filed according to the established jurisdiction, within a year from the date of the events which have served grounds for presentation of a claim have occurred.

Article 95. The carrier bears the responsibility for safety of cargo, after the latter is accepted for transportation and storage and until the delivery to the consignee (addressee) unless the carrier proves that the loss, shortage or damage of a cargo have happened due to circumstances which the carrier could not prevent or eliminate due to circumstances beyond his control.

Article 96. The carrier, in the manner prescribed by the legislation of the Russian Federation, compensates the damage caused during the transportation in the following amounts:

At a rate of cost of the lost or missing cargo in case of its loss or shortage;

At a rate of the sum on which cost of a cargo has depreciated, in case of its damage or at a rate of its cost in the invent if it is impossible to restore the damaged cargo;

At a rate of the declared cost of the cargo which has been handed over for transportation with the announcement of its value, in case of its loss;

At a rate of the share of the declared cost of the cargo corresponding the missing or damaged (spoiled) part of a cargo, handed over for transportation with the announcement of its value, in case of shortage or damage of cargo.

Cost of a cargo is determined from the price specified in the invoice of the seller or as stipulated by the contract, and at absence of the invoice of the seller or the price in the contract the price is determined from the price which at analogous circumstances is usually charged for similar goods.

Alongside with compensation of damage in the amounts established by the present article, the carrier returns the payments charged for transportation of cargo and other payments due to the carrier proportionally to the quantity of lost, missing or damaged (spoiled) cargo, given the transport is not included into the cost of such cargo.

The Civil Code of the Russian Federation (part II, chapter 40), adopted in December 1995

The Air Code of the Russian Federation, adopted in 1997

International carriage:

Convention for the unification of certain rules relating to international carriage by air of 1929

Time Limit

In accordance with article 797 of the Civil code, an obligatory complaint must be sent to the carrier before submitting a claim against it to the court. The time limit for claims against the carrier is one year from the date specified by the special acts on types of transport.

The Air code provides that the limitation period shall start running from the day after the day of receipt from the carrier of a response to complaint, in case if the carrier refuses to settle the complaint fully or in part; in case if no response is received from the carrier, this period shall commence 45 days after the date of receipt of the complaint by the carrier.

For international air carriage provisions of Warsaw Convention of 1929 shall apply, with time limit of two years.

Limitations on Liability

Article 796 of the Civil code provides that the carrier shall be responsible for non-preservation (loss or damage) of the cargo unless it will prove that loss, waste or damage of cargo occurred due to the circumstance which the carrier could not prevent and elimination of which was not in its powers.

Article 118 of the Air code, the carrier shall be liable for loss, waste or damage of the cargo in case if it will not succeed in proving that it has taken all necessary measures to prevent such loss or damage or that it was impossible to take such measures (par. 1); par. 3 of art. 118 states as another condition for liability of the carrier for loss, waste or damage of the cargo that the carrier will not succeed in proving that such loss/damage did not occur as the result of its intentional action or omission that it did not occur in the course of carriage by air.

Limitation of liability for the loss or damage of cargo/luggage accepted with declared value will be such declared value; for cargo/luggage without declared value – not more then 200 roubles per kilo of such cargo.

For international carriage of goods by air, provisions of the Warsaw convention of 1929 shall apply. The carrier will be liable unless it will be able to prove that it has taken all necessary measures to avoid damage or that it was impossible to take such measures. Limitation of liability shall be 250 francs per kilo of cargo/luggage, unless the higher value was declared and the carrier will not succeed in proving that the declared value exceeds the true interest of the passenger/consignor in such cargo.

The Civil Code of the Russian Federation (part II, chapter 40), adopted in December 1995

The Regulations of automobile transport of the RSFSR, adopted in 1969

International carriage:

Convention on the contract for international carriage of goods by road (CMR) of 1956

Time Limit

In accordance with article 797 of the Civil code, an obligatory complaint must be sent to the carrier before submitting a claim against it to the court. The time limit for claims against the carrier is one year from the date specified by the special acts on types of transport.

Regulations provide that the claim may be submitted if no response has been received for the complaint or if the complaint has not been satisfied in full, so the time limit runs from the date when the response from the carrier with full or partial refusal to satisfy the complaint has been received or if no response has been received in 30 days.

For international carriage by road, provisions of the CMR Convention apply, with time limit of one year.

Limitations on Liability

Article 796 of the Civil code provides that the carrier shall be responsible for non-preservation (loss or damage) of the cargo unless it will prove that loss, waste or damage of cargo occurred due to the circumstance which the carrier could not prevent and elimination of which was not in its powers. The Regulations (in article 132) specify that such circumstances include: (a) consignor’s / consignee’s fault; (b) nature of the cargo, (c) defects of packaging (if those could not be noticed at the acceptance of cargo for carriage), (d) if the carrier has not been notified of the cargo’s special qualities which require special conditions of carriage; (e) if cargo moisture exceeded the standard level at acceptance. Article 133 of the Regulations additionally specifies that unless the claimant shall prove that loss or damage occurred due to the fault of the carrier, the carrier shall not be liable for such loss or damage in cases when: (a) the cargo has been delivered in a sound automobile / container with consignor’s seals and other safety markings intact, (b) loss or damage occurred due to natural causes in connection with carriage in open-top vehicles, (c) cargo was accompanied by consignor’s / consignee’s forwarding agent, (d) loss / deterioration of cargo was within the limits of standard natural loss/deterioration.

In case of loss of cargo or luggage, damages shall be paid in amount of value of the lost cargo or luggage. Such value is determined as invoiced or declared value of the cargo/luggage in question.

For international road carriage operations, limitations provided by article 23 of the CMR Convention shall apply (NB: Russia has not signed the 1978 Protocol), i.e. the carrier shall not be liable if it will succeed in proving that loss, damage or late delivery of cargo took place due to risks arising from: (a) use of open-top vehicles, if use of such vehicles has been agreed on and specified in the waybill; (b) absence, damage of packaging or unsatisfactory packaging when it is necessary; (c) removal, loading, placement or unloading of the cargo by consignor, consignee or their agents, (d) nature of certain kinds of cargo, (e) unsatisfactory markings, (f) carriage of animals. Limit of liability for cargo lost or damaged is 25 gold francs (10/31 g of 0.900 gold) per kilo of missing weight

The Regulations of automobile transport of the RSFSR, adopted in 1969

Time limit

Requirement for obligatory complaint to be sent to the carrier prior to filing a claim does not apply. The general time limit of three years applies (article 196 of the Civil code).

Limitations on liability

Carrier shall be liable unless it shall prove that damages have been incurred not at its fault. Damages incurred due to the intention of the sufferer also must not be compensated. Income of the sufferer not received due to damage sustained, as well as expenses connected with deterioration of health (medical treatment, etc.) is to be compensated. In case of death, dependants of the passenger shall be entitled to compensation of funeral expenses, as well as to receipt of the portion of sufferer’s income which would have been spent on them.

Article 107. The carrier bears the responsibility for safety of luggage, after the latter is accepted for transportation and storage and until the delivery to the passenger unless the carrier proves that the loss, shortage or damage of a cargo have happened due to circumstances which the carrier could not prevent or eliminate due to circumstances beyond his control, including the circumstances specified in article 95 of the present Charter.

The damage caused by transportation of luggage, is compensated by a carrier in case of:

Loss or shortage of luggage at a rate of cost of the lost or missing luggage;

Damage of luggage at a rate of the sum on which its value has depreciated, at impossibility of restoration of the damaged luggage at a rate of its cost;

Loss of luggage which was handed over for transportation with the announcement of its value at a rate of the announced value of luggage.

Cost of luggage is determined from its price specified in the invoice of the seller or stipulated by the contract, and at absence of the invoice of the seller or the price in the contract the price is determined from the price which at analogous circumstances is usually charged for similar goods.

The carrier alongside with compensation of the damage caused by loss, shortage or damage of luggage, returns to the passenger, the addressee the payment for transportation of luggage, and also other payments due to the passenger, the addressee which were paid for transportation of lost, missing or damaged (spoiled) luggage.

Article 110. For a delay of departure of a train or for delay of a train on railway station of destination, except for transportation in the suburban communications, the carrier pays to the passenger a penalty at a rate of three percent of a fare for each hour of a delay, but no more than the full amount of fare unless he douse not prove that the delay or delay of a train has happened due to force majeure circumstances, elimination of a danger to the life or health of the passenger, malfunction of vehicles, which have arisen not by the fault of the carrier, or other circumstances independent from the carrier.

The passenger also has the right to demand compensation for other losses caused to him in accordance with the legislation of the Russian Federation.

Article 113. The carrier bears the responsibility for the harm, caused lives or to health of the passenger, in accordance with the legislation of the Russian Federation. Obligatory and voluntary life insurance and health of the passenger for the period of travel on railway transportation is carried out in accordance with the legislation of the Russian Federation.

The Civil Code of the Russian Federation (part II, chapter 40), adopted in December 1995

The Air Code of the Russian Federation, adopted in 1997

International carriage:

Convention for the unification of certain rules relating to international carriage by air of 1929

Time Limit

Article 124 of the Air code requires a complaint to be submitted to the carrier prior to filing a claim. Complaint may be submitted within six months from the date of event which caused the complaint to be submitted. For rules on commencement and currency of the limitation period, please see the section for carriage of cargo by air.

Rules of 1929 Warsaw convention, which provide for the two year limitation period shall apply in case of international carriage.

Limitations on Liability

Carrier shall be liable unless it shall prove that damages have been incurred not at its fault. Damages incurred due to the intention of the sufferer also must not be compensated. Income of the sufferer not received due to damage sustained, as well as expenses connected with deterioration of health (medical treatment, etc.) is to be compensated. In case of death, dependants of the passenger shall be entitled to compensation of funeral expenses, as well as to receipt of the portion of sufferer’s income which would have been spent on them.

In case of international carriage, Warsaw convention of 1929 shall apply, which provide that the carrier shall not be liable in case if it will prove that it has taken all necessary measures to avoid damage or that it was not possible to take such measures. A limit of 250,000 francs (each of 0,0655 g of 0.900 gold) per passenger is also provided for by the Convention.

The Regulations of automobile transport of the RSFSR, adopted in 1969

Time limit

Requirement for obligatory complaint to be sent to the carrier prior to filing a claim does not apply. The general time limit of three years applies (article 196 of the Civil code).

Limitations on liability

Carrier shall be liable unless it shall prove that damages have been incurred not at its fault. Damages incurred due to the intention of the sufferer also must not be compensated. Income of the sufferer not received due to damage sustained, as well as expenses connected with deterioration of health (medical treatment, etc.) is to be compensated. In case of death, dependants of the passenger shall be entitled to compensation of funeral expenses, as well as to receipt of the portion of sufferer’s income which would have been spent on them.

Also sea-going ship can be arrested in accordance with general rules of arrest of property to secure a claim or enforcement of decision of court in accordance with rules of arrest, provided for by Russian Arbitration procedural code or Civil procedural code.

Any foreign vessel can be arrested when she is within the limits of jurisdiction of the Russian Federation in accordance with Merchant Shipping code (article 388)and 1952 Convention, on the ground of respective ruling of entitled court or arbitration to secure maritime claim. In practice a vessel which is on the territory of the Russian Federation can be arrested.

If a decision of court or arbitrage has entered into legal force, Merchant Shipping code and Convention shall not apply to the arrest.

In accordance with article 388 of Merchant Shipping Code a vessel can be arrested on maritime claim. In accordance with article 389 any claim connected with any contract on carriage of cargo by sea or contract of carriage of a passenger by sea on a vessel shall be deemed maritime claim.

Any other ship or ships, owners, bareboat-, time- or voyage charterers of which at the same time owners of the vessel, in respect of which maritime claim arisen, can be arrested on such a claim.

A court is Russian court of general jurisdiction.

Arbitration courts are another branch of judicial system – courts, which consider disputes between legal persons.

Russian arbitration on maritime cases, entitled to arrest vessels is in accordance with Russian law ‘On international commercial arbitration’ (annex II) is Maritime arbitration commission, situated in Moscow.

A person is entitled to file application to the court or the arbitration court, in which territory of jurisdiction the port is situated, where the vessel is located at the moment of application.

The application to arrest the vessel shall be submitted to the court or arbitration court 9in case if both claimant and shipowner are legal persons or physical persons - registered entrepreneurs) by the person who has maritime claim.

The application shall be filed with the court/ Arbitration court of the region in which the vessel is situated (For example, if the vessel is in the port of Novorossiysk, the application shall be filed with the Arbitration court of Krasnodar region, etc.).

We will further describe procedure in arbitration court as most probable situation.

The documents requested by the law shall be attached to the application (Charter of claimant, Power of attorney, etc). State fee for the application in the amount of 1000 rubles (about US$ 40) shall be paid.

Arbitration court shall consider the application not later than the day succeeded the day of submitting of application to the Arbitration court without noticing the parties. Russian Merchant Shipping Code and 1952 Convention do not contain any other requirements to the claimant than to evidence presence of maritime claim.

Upon consideration of the application Arbitrage court is entitled to deliver the ruling to arrest the vessel or to reject the application.

Written copies of the ruling shall be issued by court not later than the day succeeded the day of consideration of the application and sent to the parties.

In case if the applicant considers that the ruling, rejecting the application was taken is breach of the law, the applicant is entitled to appellate against the ruling to the Appellation instance (Appellation court) within 10 days, and further to the Cassation instance (Federal Cassation court).

In case if the ruling to arrest the vessel was delivered, the writ of execution shall be issued by the court immediately after the delivery of arrest ruling.

Upon the receipt of copy of arrest ruling and writ of execution the applicant shall submit the documents together with respective application to the Federal Service of Bailiffs (FSSP).

The Bailiff is the Russian official entitled to impose arrest on vessels. Upon receipt of the writ of execution Bailiff commence execution proceedings. The Bailiff arrives to the port and issues act of arrest of the vessel. From this moment the Master of port shall not permit the vessel leave the port until the moment when the arrest is removed. Russian law “On execution procedure” provides only maximum term within which the arrest shall be effected by the Bailiff – two months. (the expiry of this term does not affect the validity of the writ of execution). It is specially provided for by the said law however that if the act of the court states that it shall be executed immediately (the ruling to arrest a vessel shall contain such clause) it shall than be executed immediately by the Bailiff. In practice term of execution of arrest depends mainly upon position of Bailiff.

Considering our practice, the whole procedure time may range from 24 hours from the beginning (submitting of application to court) to the end (arrest) (ideally) to several days (24 hours for court ruling, another day for receipt of execution writ, time to bring execution writ from the city where court is situated to the port, waiting for reception days of Bailiff’s service (which usually are Mondays and Thursdays only), other possible delays).

Arrest as security measure as a part of procedure of court consideration on the merits of the case.

If a person decides to submit the dispute to the jurisdiction of Russian court and, therefore, to file the claim on the merits of the case to Russian arbitration court, it is possible to seek arrest of the vessel as a security of the claim.

In order to take measures for securing execution of arbitral decision it is required that the arbitration proceeding of consideration on the merits of the case have been already commenced by the Russian arbitration court.

As soon as the court accepts statement of claim and commence proceedings or simultaneously with filing of such statement of claim the claimants may file with the same court an application for securing the claim, in particular to arrest defendants’ vessel or vessels.

The application shall be considered by Arbitration court not later than the day succeeded the day of submitting of application to the Arbitration court without noticing the parties. Upon consideration of the application Arbitrage court is entitled to deliver the ruling to arrest the vessel or to reject the application.

If the court finds that one of following grounds for applying arrest of the vessel are present:A.

failure to take these measures may impede or make impossible the execution of a judicial act; or B.

arrest of the vessel can prevent the infliction of extensive harm to the applicant,

the court shall deliver a ruling of arrest of the vessel.

Russian arbitration courts takes measures on the basis of its own assessment of circumstances of the case and there are no circumstances under which the court will be obliged by law to satisfy an application for securing the claim. If the court finds that the grounds specified in A and B above do not exist the application for securing the claim will be rejected. According to our practice courts are inclined to reject application for securing claims more often than not.

Counter security.

The only circumstance whereunder the application for security of claim may not be rejected in accordance with Russian law and court practice is providing by the applicant of a counter security for possible damages of the defendant.

A counter security is provided either on demand of the court or on the applicant’s own initiative.

If in the event of considering the application for securing the claim the court demands that the applicant shall provide a counter security, then without providing the same the application will be rejected.

The amount of counter security established by the court may not exceed amount of claim. The amount of counter security requested by the court may not be less than half the amount of property claims.

A counter security shall be provided by way of entering into a deposit account of the court monetary assets in the amount suggested by the court or by way of providing a bank guarantee, pledge or other financial guarantee in the same amount.

Further procedure and estimated time of the arrest of vessel as security of claim is similar to the procedure of arrest of vessel on maritime claim, described above

In absence of such an agreement court/arbitration is entitled to determine form and amount of security, which shall not exceed value of the arrested vessel.

In absence of such an agreement court/arbitration is entitled to determine form and amount of security, which shall not exceed value of the arrested vessel.