UK COURT RULES THAT FOREIGN ARBITRATION AWARDS DOMESTICATED IN THE UK BEAR INTEREST FROM THE DATE OF ENTRY
We have reported several times on a dispute over an award issued by the International Commercial Arbitration Court in Moscow, Russia, of over $88 million relating to a dispute over natural gas, and efforts to enforce the award in the UK and the United States pursuant to the New York Convention (see June 14, 2007, November 27, 2007 and March 26, 2008 posts). The UK Commercial Court has ruled that foreign arbitration awards that are reduced to a judgment in a UK court under the UK Arbitration Act of 1996 bear interest at the rate of 8% from the date of the entry of the UK court judgment. This results in interest of approximately $12.6 million on this particular arbitration award. Gater Assets Limited v. Nak Naftogaz Ukrainiy [2008] EWHC 1108 (Comm.).
This post written by Rollie Goss.
