Point of law: legal factors on which depends the possibility of recognition and execution of a foreign (specifically, a Cypriot) court decision  concerning a transaction under Russian law and between Russian legal entities.

Alternative attitudes: 1) such possibility depends on the clear and direct assignment of jurisdiction over such disputes to the foreign court; or 2) it depends on whether the dispute considered by the foreign court falls within the exclusive jurisdiction of Russian commercial courts.

Ratio decidendi: the second approach is legally correct. At the same time, the Presidium pointed out that a reference in the court decision to a provision of Cypriot law amounts to “extraterritorial application by the foreign court of public legislation of its own State to the transaction in question” and thus “is capable of impairing the sovereignty of the Russian Federation”, which entails the denial of recognition of the corresponding part of the decision.

Practical consequences: the Judgment says that prior court decisions in analogous cases if inconsistent with this interpretation may be reversed in the procedure and within the limits envisaged by Art 311 of the Commercial Procedure Code.