An arbitrator of the International Dispute Panel of the Arbitration Centre at the RSPP considered a dispute for the recovery of debt, interest and penalty under a sunflower oil sales contract between the Russian agricultural company (Supplier) and the Chinese counterparty (Buyer). During the arbitral proceedings parties arranged the dispute by entering into a settlement agreement, which was recorded by the arbitral tribunal at the request of the parties in the award by consent.

Despite being allowed, under the terms of the settlement agreement, to collect the goods at the port of shipment, the Respondent refused to pay. The Claimant was therefore compelled to apply to the Intermediate People's Court of Hulunbuir City, Inner Mongolia Autonomous Region (PRC), for enforcement of the award.  By the order dated 15 September 2022, the court stated that there had been no procedural failure in the arbitration and that the enforcement of the arbitral award would not be contrary to the public policy of the People's Republic of China.

Commenting on the judicial act, Alexander Zamaziy, Managing Director and Chief of Staff of the Arbitration Centre at the RSPP, noted that "the rules of the Arbitration Centre encourage conciliation procedures by setting out the obligation of the arbitral tribunal to assist the parties in settling the dispute and providing for a reduction of the arbitration fee if the parties conclude a settlement agreement. Moreover, the case in question clearly demonstrates that it is reasonable for the parties to request the arbitral tribunal to 'approve' the settlement agreement with an award by consent, which gives a guarantee of its enforcement."

Zhenli Zhang, a partner at DeHeng Law Firm, an arbitrator at the Arbitration Centre at the RSPP and an ambassador of the Arbitration Centre to the People's Republic of China, says: "Since 1987, the basis for enforcement of international commercial arbitration awards in China has been the 1958 New York Convention. The total number of applications for enforcement of foreign arbitral awards filed with Chinese courts, including by Russian companies, has increased significantly in recent years, with a final enforcement rate of more than 90%. Such statistics show that China's pro-arbitration approach has been strengthened and the level of confidence in foreign arbitral awards has increased."

The order of the Intermediate People's Court of Hulunbuir City, Inner Mongolia Autonomous Region is available at the link.