6th CIS Local Counsel Forum, Almaty, Kazakhstan June 22 – 24, 2011 Dr. Thomas Rihm, Partner Thouvenin Attorneys - at - Law Klausstrasse Zurich, Switzerland Phone: Fax : th CIS Local Counsel Forum Why arbitration at all ?

6th CIS Local Counsel Forum Almaty, Kazakhstan June 22 – 24, 2011 Dr. Thomas Rihm Thouvenin Rechtsanwälte, Zurich Why arbitration at all ? existence of arbitration clause excludes a jurisdiction of foreign courts (potential exemption: interim measurers) parties’ trust to their arbitrators vs. unknown foreign judges neutrality and capability of emerging markets state courts questionable private arbitrators more experienced in international business matters international languages accepted

6th CIS Local Counsel Forum Almaty, Kazakhstan June 22 – 24, 2011 Dr. Thomas Rihm Thouvenin Rechtsanwälte, Zurich Why arbitration at all ? application of foreign laws by state court doubtful confidentiality: full privacy of arbitration proceeding vs. potentially public hearings in state courts speed: final award cannot be challenged or only to a very limited extent (can be fully excluded for e.g. Swiss arbitration awards); state court awards in most countries subject to legal remedies

6th CIS Local Counsel Forum Almaty, Kazakhstan June 22 – 24, 2011 Dr. Thomas Rihm Thouvenin Rechtsanwälte, Zurich well-known international procedures vs. pitfalls of local procedural laws avoidance of far-reaching Anglo-Saxon pre-trial discovery proceedings / witness cross-examinations no European-style limitations on evidence taking (IBA-Rules on Evidence Taking in International Commercial Arbitration) Why arbitration at all ?

6th CIS Local Counsel Forum Almaty, Kazakhstan June 22 – 24, 2011 Dr. Thomas Rihm Thouvenin Rechtsanwälte, Zurich expensive: yes but consider otherwise available legal remedies; consider additional costs such as for travel of parties, witnesses and experts to far-reaching countries, less translation costs, risks and costs of enforcement Potential disadvantages of arbitration

6th CIS Local Counsel Forum Almaty, Kazakhstan June 22 – 24, 2011 Dr. Thomas Rihm Thouvenin Rechtsanwälte, Zurich Arbitration is market driven Institutional players -ICC (International Chamber of Commerce) -LCIA (London Court of International Arbitration) -Rules of Arbitration and Conciliation (Vienna Rules) -Swiss Rules of International Arbitration -CIETAC (Chinese International Economic and Trade Arbitration Commission) -SIAC (Singapore International Arbitration Centre)