Panel of Mediators in Conciliation Proceedings at the Chamber of Commerce and Industry of the Russian Federation

RULES OF MEDIATION CONDUCTED THROUGH A MEDIATOR

These Rules, devised by the Panel of Mediators in conciliation proceedings (hereinafter the “Panel”) at the Chamber of Commerce and Industry of the Russian Federation, govern the procedure of mediation involving a mediator.

Mediation guided by a mediator (hereinafter the “Mediation”) is an alternative (extrajudicial) method of resolving conflicts, differences, and disputes arising out of commercial matters by developing mutually beneficial or mutually acceptable terms for dealing with such conflicts, differences, and disputes, aimed at assisting the parties to reach a voluntary agreement (hereinafter the “Settlement Agreement”) in accordance with the agreed terms.

Under the terms of the Settlement Agreement, the mediator may participate in the negotiations between the parties, the entering into agreements by the parties, and in other matter, as the parties may deem necessary.

All fees and costs relating to mediation are determined by the Schedule of Mediation Fees and Costs of the Panel of Mediators at the Chamber of Commerce and Industry of the Russian Federation (hereinafter the “Fees and Costs Schedule”), approved by the President of the Chamber of Commerce and Industry of the Russian Federation as an Annex to these Rules.

Article 1. Application for Mediation

1. The parties wishing to settle a conflict, difference or dispute (hereinafter the “Dispute”) arising between them with the help of a mediator shall approach the Panel with a joint application (hereinafter the “application”) for mediation.
   The application shall include:
   
   • the names of the parties (full names), their postal addresses, telephone and fax numbers, and e-mail addresses;
   • full names of the authorized representatives, if any, of the parties;
   • a short description of the background of the Dispute, including the value of the Dispute; and
   • the full name of the mediator appointed by the parties or a joint request for appointment of a mediator, stating the qualification requirements of the mediator sought by the parties
     The application shall be accompanied by proof of payment of the registration fee specified in the Fees and Costs Schedule.
2. Where the application is filed only by one or some of the parties to the Dispute, the filing party or parties shall send a copy thereof to  the other party or parties to the Dispute that have not signed the application filed. The application shall meet the requirements of Clause 1, Article 1 of these Rules.
3. The mediator shall not accept an appointment for mediation from the parties directly. Where a party approaches the mediator with such an offer, the mediator shall explain to such party the mediation process principles laid down in these Rules.

Article 2. Selection or Appointment of the Mediator

1. Unless the parties have agreed otherwise, mediation shall be conducted by a sole mediator.
2. The mediator shall be selected by the parties from the list of members from the Panel of Mediators at the Chamber of Commerce and Industry of the Russian Federation (hereinafter the “List of Panel Members”) or nominated by the consenting parties themselves.
3. Where the parties have not reached an agreement on the appointment of a mediator within 30 days from the date of application being filed with the Panel, the Panel Chairman shall appoint a mediator having regard to the preferences, if any, of the parties.
4. The provisions of these Rules which govern the duties of a sole mediator shall apply to mediations involving two or more mediators. Co-mediators shall divide their duties among themselves subject to approval by the parties and the Panel Chairman.
5. The mediator selected or appointed as above shall make a written statement pledging to be neutral, independent, and impartial, and to keep confidential information coming to his knowledge in the course of the mediation.
6. Where the mediator selected or appointed as above cannot for whatever reason begin or continue  mediation, the Panel Chairman shall appoint another mediator, unless the parties have agreed otherwise

Article 3. Preparation for the Mediation Process

1. All parties to the Dispute shall be involved in the preparation for mediation.
2. In preparation for mediation, consultations shall take place with the executives of the organizations, individual businessmen, or other persons who are parties to the Dispute, and/or their representatives.

Article 4. Consultations with the Parties

1. Consultations with the parties in relation to mediation shall only commence after the parties have presented proof of payment of the registration fee.
2. The mediator shall hold consultations with the parties in order to:
   • clarify the background of the Dispute and the respective positions of the parties;
   • determine which documents and relevant and necessary;
   • initially determine the terms, requirements, and wishes of the parties regarding the mediation process and its outcome;
   • obtain the respective views of the parties on the expected timeframe for holding and completing the mediation; and
   • designate a place and time for commencing the mediation.
3. Consultations between the parties shall result in an agreement that contains, among other things, the size, the payment process, and the distribution of the fees for, and costs of, the mediation to the extent that is permissible under these Rules and the Fees and Costs

Article 5. Mediation process

1. Mediation shall only be conducted after the parties have paid the mediator’s fee and administrative fees.
2. Upon conclusion of the consultations, the date of the mediation meeting shall be fixed so as to ensure to the fullest extent possible the attendance of the executives of the organizations, individual entrepreneurs, or other persons who are parties to the Dispute.
3. Where the individuals named in clause 2 above are unable to attend in person, the mediation date shall be fixed to ensure attendance of the duly authorized representatives of the parties directly in charge of the issue submitted for mediation.
4. The mediation meeting shall commence with confirmation that those in authority present have full authority to settle the Dispute and reach a Settlement Agreement.
5. The mediator shall introduce himself to the parties and tell them about his professional background. The parties shall also be informed about the underlying principles of the mediation, namely:
   • free will of the parties;
   • equality of the parties;
   • confidentiality of mediation; and
   • neutrality of the mediator.
6. The parties shall be informed about the role of the mediator in the mediation which is to assist the parties to agree and sign the Settlement Agreement and about the right of the parties to withdraw from mediation at any time.
7. The mediator shall be completely free to choose any approach to the mediation process and shall, with the aim of achieving maximum efficacy, organize it at his own discretion, subject, however, to the provisions of these Rules.
8. In the course of mediation, the parties shall state the nature of their Dispute and make proposals for settling it.
9. If the mediator deems it appropriate, he may confer in confidence with each of the parties separately. He may only pass the information he gained in confidence to the other party if he has been given permission by the party that has given the information.
10. The mediator shall offer the parties an opportunity to state their respective positions and formulate their proposals, which, in their view, can lead to the settlement of the Dispute.
11. In the course of mediation the mediator may discover the actual interests and intentions of each party. While adhering to the principles of neutrality and equality of the parties, the mediator may, with the consent of the parties, offer his suggestions for a possible resolution of the Dispute and a Settlement Agreement.
12. The Settlement Agreement shall clearly state the terms on which the Dispute has been settled and contain an obligation by each party to voluntarily fulfill the Settlement Agreement, and a deadline for fulfilling it.  The mediator may, if agreed by the parties, help the parties to draft the text of the Settlement Agreement.
13. The Settlement Agreement shall be in writing in triplicate, each copy thereof being signed by the persons involved in the mediation.

Article 6. Suspension and Termination of the Mediation

1. The mediator shall suspend the mediation in the following circumstances:
   
   • when he considers it appropriate for any reason,  which includes, for example when a temporary obstacle to entering into a mutually acceptable Settlement Agreement arises; and
   • in any other situations at the request of one or all parties.
2. The mediation shall be terminated in the following circumstances:
   • if, as a result of inaction by at least one of the parties, the suspended mediation is not resumed within 30 days or any other period agreed;
   • if resuming the suspended mediation is considered by the mediator or at least by one of the parties to be hopeless or impossible for any other reason;
   • if the period agreed by the parties to reach a settlement has expired and the parties have not agreed to extend it; or
   • in circumstances set out in the Fees and Costs Schedule.
3. Mediation shall be deemed terminated upon the signing of a Settlement Agreement by the parties or for reasons indicated in Clause 2 of this Article.

Article 7. Confidentiality

The mediator and the parties shall keep confidential all matters relating to the mediation. The requirement of confidentiality shall also apply to the Settlement Agreement reached as a result of the mediation, except when, and to the extent that, disclosure of some provisions thereof is essential for performing the same.

Article 8. Organizational Issues

1. A List of Panel Members shall be approved by the President of the Chamber of Commerce and Industry of the Russian Federation as an Annex to these Rules, and shall contain the full names of the mediators listed and information about their professional backgrounds. The List of Panel Members shall be provided to any and all interested persons.
2. The Panel shall be chaired by a Panel member appointed by the President of the Chamber of Commerce and Industry of the Russian Federation.
3. Unless specified otherwise in these Rules, all issues arising in the course of business, not connected to the resolution of the Dispute shall be regulated by the Panel Chairman.
4. The Chamber of Commerce and Industry of the Russian Federation shall provide the organizational and methodological support to the Panel by appointing an Executive Secretary of the Panel to fulfill functions specified in these Rules.
5. The Executive Secretary of the Panel shall act on instructions of the Panel Chairman to fulfill functions specified in these Rules.
6. The Executive Secretary of the Panel shall discharge the duties of the Panel Chairman during his absence.