Selection of arbitrators by the parties to the arbitration proceeding

In accordance with the AICAC Regulations, the general rules for the selection by the parties to a dispute or the appointment of arbitrators (the numerical strength and personal composition of each arbitral tribunal considering a particular dispute) have the following basic characteristics:

Number of arbitrators

1. In case if in an arbitration clause or in a special arbitration agreement the parties have not agreed on the number of arbitrators, who, in the event of a dispute between them, shall settle it in the AICAC (hereinafter - the Arbitration Court), or if within 15 days of the respondent's receipt of the notice of arbitration the parties fail to agree that the arbitral tribunal shall consist of one arbitrator, than the arbitral tribunal of three arbitrators shall be appointed to consider the dispute in the Arbitration Court.

2. All arbitrators, regardless of whether they are elected by the parties or appointed under the procedure specified in the AICAC Regulations, who are members of the arbitral tribunal considering a particular dispute, are required to preserve independence and impartiality, as well as to desist from any form of demonstration of prejudice in favor of one of the parties and to exclude from their actions the intentional protection of its interests, or disregard for the rights and interests of the other party for the entire period of having the status of arbitrator of the arbitral tribunal. In accordance with the rules of the AICAC Regulations, duly proven violation of this rule by any arbitrator at any stage of arbitration shall result in the exclusion of such arbitrator from the arbitral tribunal and replacement by another arbitrator at the initiative of other arbitrators, the parties to the dispute or the Secretariat of the Arbitration Court and under the decision of the President of the Arbitration Court.

Appointment of a one-arbitrator tribunal

1. An arbitrator for the sole consideration of a dispute in the Arbitration Court shall be selected from among persons listed in the Official Register of the Arbitration Court judges.

2. In the event when, according to the will of the parties the dispute shall be considered in the Arbitration Court by the arbitral tribunal consisting of a sole arbitrator, either party may offer one or more persons listed in the Official Register of the Arbitration Court judges to the other party for coordinated selection of such persons, one of which could act as sole arbitrator.

3. If within 30 days of receipt by one party of a proposal made by the other party in respect of a sole arbitrator the parties fail to agree on the selection of a sole arbitrator, a sole arbitrator shall be appointed by the competent person (body) selected by the parties: the President of the Arbitration Court or the President of the International Union of Commerce and Industry (London, UK). If a competent person (body) is not agreed upon by the parties within 5 days of expiry of the 30-day term for independent selection of a sole arbitrator by the parties, the arbitrator shall be appointed by the President of the Arbitration Court within a day of accrual of the right to do so.

4. In the above mentioned cases a competent person (body) shall appoint a sole arbitrator within 3 calendar days of accrual of the authority to appoint a sole arbitrator of the arbitral tribunal. Carrying out such appointment, a competent person (body) may use one of the following procedures for the appointment of an arbitrator:

4.1. Select one of the arbitrators listed in the Official Register of the Arbitration Court judges, being guided by objective assessment of individual competencies of corresponding candidates and the convenience of organization and conduct of an effective, independent and impartial arbitration;

4.2. Select one of the arbitrators listed in the Official Register of the Arbitration Court judges, in accordance with the following procedure:

  •  from among arbitrators listed in the Official Register of the Arbitration Court judges a competent person (body) specifies an extensive list of candidates for appointment as arbitrators in the arbitral tribunal to consider a specific dispute; such list should contain at least three alternative candidates and must be sent to both parties;
  •  within 10 days of receipt of the list, each party shall return it to the competent person (body), having excluded from the proposed list of arbitrators the candidates which it objects to, and having numbered the remaining names on the list in the order of preference (number "1" shall correspond to the most acceptable candidate for the party, and so on - in the descending order of preference);
  •  within 3 days of expiry of the term specified in sub-paragraph b) of paragraph 4.2., a competent person (body) shall appoint the sole arbitrator from among the persons approved in the lists returned to him/her (it), with regard to the order of preference specified by the parties;
  •  if for any reason the appointment of a sole arbitrator cannot be made in accordance with this procedure, a competent person (body) has the right to appoint a single arbitrator in accordance with paragraph 4.1.

5. The personal composition of the arbitral tribunal consisting of one arbitrator shall be approved and assume formal authority for the consideration of a dispute from the moment of entry into force of the Order of the President of the Arbitration Court.

Appointment of a three-arbitrators tribunal

1. In order to build an arbitral tribunal consisting of three arbitrators and consider a dispute in the Arbitration Court the arbitrators shall be selected from among persons listed in the Official Register of the Arbitration Court judges.

2. In the event when, according to the will of the parties, the dispute shall be considered in the Arbitration Court by the arbitral tribunal consisting of three arbitrators, each party shall be entitled to appoint one arbitrator in case of a dispute between the parties.

3. Two arbitrators appointed by the parties shall elect the third member of the arbitral tribunal.

4. The chairman of an arbitral tribunal consisting of three arbitrators shall be the one with the university degree in law and, with respect to the merits of the dispute, characterized by the greatest knowledge and experience in the field of international economic (commercial, trade) law, international private law, international commercial arbitration, civil, economic (commercial, trade), and labor legislation of individual states (of particular importance may be knowledge of the laws of countries represented by the parties to the dispute, or countries the legislation of which is the substantive law applicable in the dispute settlement), and also has impeccable personal reputation.

5. In the event when the criteria specified in paragraph 4 are best met by an arbitrator selected as a member of the arbitral tribunal by one of the parties, and the other party objects to giving that person the status of the chairman of the tribunal consisting of three arbitrators, then, instead of the previously selected person, the third arbitrator, who shall be also the chairman of the tribunal must be appointed by the President of the Arbitration Court from among the arbitrators listed in the Official Register of the Arbitration Court judges and being legal professionals with the necessary knowledge, experience and reputation.

6. If within 30 days of receipt by one party of the notice from another party (the first party - initiator of the procedure) on the appointment of an arbitrator to an arbitral tribunal of three arbitrators, the other party (the receiver of the original notice) does not notify the first party in response about the arbitrator appointed by it, the second arbitrator shall be appointed in accordance with the following rules:

  •  the first party may request the competent person (body) previously agreed upon by the parties - the President of the Arbitration Court or the President of the International Union of Commerce and Industry (London, UK), to appoint the second arbitrator;
  •  if a competent person (body) is not agreed upon by the parties within 5 days of receipt by one party of the notice from another party about the appointment of an arbitrator to an arbitral tribunal of three arbitrators, the second arbitrator shall be appointed by the President of the Arbitration Court within 24 hours after the origin of the right to do so.

7. Two arbitrators appointed in accordance with the established rules by the parties or by a competent person (body) on their behalf, within three calendar days shall elect the third arbitrator of the arbitral tribunal consisting of three arbitrators from among the persons listed in the Official Register of the Arbitration Court judges. If the arbitrators appointed in accordance with the rules of this article by the parties or a competent person (body) on their behalf, are not professional attorneys, the third arbitrator must be elected from among professional attorneys listed in the Official Register of the Arbitration Court judges, who best meet the requirements stated in paragraph 4.

8. If within 15 days after the appointment of the second arbitrator, two arbitrators appointed in accordance with the rules of this article by the parties or by a competent person (body) on their behalf, fail to agree on the selection of the third arbitrator, the latter is appointed by a competent person (body) under the procedure specified for the appointment of a sole arbitrator.

9. The chairman of the arbitral tribunal consisting of three arbitrators shall be appointed within three days from the date of selection or appointment of the third arbitrator, by unanimous consent of all arbitrators, in accordance with the rule stated in paragraph 4 (except for the cases specified in paragraph 5). If the arbitrators fail to reach an unanimous consent when appointing the chairman of the arbitral tribunal consisting of three arbitrators, the chairman of the arbitral tribunal shall be appointed from among its arbitrators by the President of the Arbitration Court within 24 hours after the origin of the right to do so.

10. The personal composition of the arbitral tribunal consisting of three arbitrators, as well as the chairman of such arbitral tribunal shall be approved and assume formal authority to consider a dispute from the moment of entry into force of the Order of the President of the Arbitration Court.

Features of the procedure of appointment of arbitrators by a competent person (body)

1. If the competent person (body) is requested to appoint an arbitrator in accordance with the AICAC Regulations, the party making such request should submit the following documents to the competent person (body): a) a copy of the notice of arbitration, b) a copy of the contract that results in or in connection with which the disputed controversies, claims and demands of the parties, as well as disputes related to the execution, breach, termination or invalidity of such contract arise, and c) a copy of the arbitration agreement if not contained in the contract. A competent person (body) has the right to request from either party any information it considers necessary to perform the functions of appointing arbitrators.

2. In cases when one or more persons are proposed for appointment as arbitrators, the respective proposals shall indicate full names, addresses, and information on citizenship, occupation and qualification of these persons.

3. In cases specified in the AICAC Regulations, along with other criteria for the selection and appointment of arbitrators as members of the arbitral tribunal considering a particular dispute, a competent person (body) also takes into account the following circumstances (as far as it is possible): the nature of the contract, the features and circumstances of the dispute, as well as national (state) affiliation, location and languages of the parties. In particular, if the parties belong to different nations (states), unless otherwise agreed between them, sole arbitrators or chairmen of arbitral tribunals consisting of 3 arbitrators shall not be appointed from among persons of the same national (state) affiliation as one of the parties.