Consistency or Coincidence?

Since London has historically been a global financial center, English law dominates in international corporate and financial transactions across a variety of jurisdictions. It is no surprise that CIS business transactions are usually governed by provisions of English law. Moreover, even deals of Ukrainian origin are often governed by English law, excluding cases when the prescribed law is Ukrainian by law. English law is considered the most developed in the world in terms of investment protection. Is this a consistency or a coincidence?

The answer to this question is simple: it is a logical result when the governing law should meet the practical needs of business, ensure flexibility and be secure.

The UK judicial system enjoys a high level of credibility, a recognized reputation for reaching unbiased judgments and fair outcomes. As a result, multimillion disputes from the CIS region impetuously “move” to English courts. The most illustrative example of late was the battle between Russian oligarchs, which set a precedent for the legal fee in London.

In different sources this phenomenon has been named as an expansion of English law, or the “Britainization” of legal business. Driven by national considerations, some governments undertake attempts to improve national legislation by introducing subsequent provisions, while others simply set restrictions on the application of foreign law. However, English law has no alternatives today. It is definitely a benchmark to follow when it comes to practical dimensions of both corporate and judicial reforms.

We believe that English law deserved a special dedicated issue. Welcome to the 2013 winter season!

Нарру reading,
Olga Usenko