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Initiative of the Supreme Court of the Russian Federation to change the institute of reconciliation

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The Plenum of the Supreme Court of the Russian Federation made the decision to lay before the State Duma of Federal Assembly of the Russian Federation the federal law draft  “On introduction of amendments to separate acts of the Russian Federation in connection with improvement of conciliation procedures”.

In the Supreme Court`s view, the existing legislative provisions don’t give the possibility of reconciliation of the parties in the arbitration process (Explanatory Note to the draft of law).

On the basis of the needs of society, the existing work load of courts and international experience, the Supreme Court came to the conclusion that there is a need to improve legislation and extend boundaries of reconciliation by:

– introduction of the institute of conciliation procedures (negotiations, mediation, judicial reconciliation);

-granting the right to the court to declare a break in the judicial process in connection with the court’s proposal to the parties to try to reconcile;

– to provide the possibility of return up to 70% of the paid state duty in case of reconciliation of the parties.

The draft of law also provides a possibility to use conciliation procedures in the disputes with public authorities.  The necessity for busines and tax authorities in more effective way of tax dispute resolution became a push to appearing of this idea.

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