Cyprus is a jurisdiction that is favored by a significant number of Russian citizens who use Cyprus Companies as SPVs. However, this means that in cases where claims occur against a Russian citizen, the Plaintiff may be entitled to seek remedies from their Cyprus Companies well.
Is the Plaintiff entitled to do so?
After having obtained a Judgment from a Russian Court, the Plaintiff can file an application to a Cyprus Court requesting its recognition and enforcement. In order to maximize the success of the application, it is recommended that he/she sends a claim in writing to the concerned Cyprus Company before filing the action in Russia.
Which is the procedure to be followed?
In a nutshell:
An Application must be filed at a Cyprus Court endorsed by an affidavit attaching a true apostilled copy of the Russian Judgment and its certified translation. The statement of claim will set out details of the foreign judgment sought to be enforced and will usually include a plea, that the foreign court, which issued the judgment, has jurisdiction over the defendant.
In the meantime, are there any interim Reliefs available?
- Mareva Injunctions: Freezing of assets held by or legally registered into the name of the judgment debtor;
- Discovery and Tracing orders / Norwich Pharmacal orders: In the context of such applications, Cyprus Courts can issue orders:
- Disclosure on oath by a respondent of the location and value of his assets;
- Disclosure of information and documents regarding assets stolen in order to assist the victim of fraud, to trace his assets, to identify the wrongdoer, to plead his case and to prove his case.
- Chabra Injunctions: Freezing of assets held by, or legally registered into the name of third parties but beneficially owned by the judgment debtor. In the context of such applications, Cyprus Courts can issue orders:
- Search Orders / Anton Piller Orders: Cyprus Courts have jurisdiction to issue interim orders requiring a party to admit another party to premises for the purpose of preserving evidence, or property which is or may be the subject matter of the proceedings or as to which any question arises or may arise in the proceedings.
For clarifications on the enforcement of the decisions of Russian Courts, you can get in touch with our team.