Russian firms are more and more turning to Hong Kong for dispute arbitration providers and adopting Hong Kong’s governing regulation in business contracts, writes Nikkei in its newest report.

This shift is because of sanctions imposed on Russia over the Ukraine struggle, limiting entry to Western courts, together with London’s frequent regulation authorized system that Russian firms historically favored.

Hong Kong’s sanctions-neutral coverage, frequent regulation system, and judiciary independence have develop into engaging to Russian companies, resulting in a spike in arbitration instances.

Town’s relationship with Russia has been strengthened, with commerce between China and Russia additionally rising.

Whereas Hong Kong has positioned itself in its place authorized hub, there are considerations concerning the metropolis’s judicial independence.

Some Western and Japanese firms have moved their disputes to Singapore following the enactment of Hong Kong’s nationwide safety regulation in 2020.

Moreover, new Russian laws and court docket choices may deter Russian firms from in search of authorized providers in Hong Kong.