Third-party Funding of International Investment Arbitration (in Russian)

The article is the product of group research of Evgeniia Saveleva and Anton Zakharau within the Investment Law and Arbitration Lab and is devoted to the analysis of approaches to regulating third-party funding of international investment arbitration, as reflected in the draft documents of UNCITRAL Working Group III. Initially, arbitration did not take into account the widespread use of such funding, but the increasing costs of participating in disputes led to the development of appropriate mechanisms. Third-party funding is seen as a way to improve access to justice, but it is criticized due to the possible conflict with the public nature of international arbitration, especially in matters of transparency, confidentiality, and the independence of arbitrators.

The article analyses draft provisions 5(4), 9(3), and 12, concerning the disclosure of information, allocation and security of costs, as well as compensation of the parties' expenses. The authors emphasise the need to refine the provisions in order to eliminate risks and achieve a balance between the interests of the parties and the fundamental principles of arbitration. It is noted that it is advisable to develop additional regulatory mechanisms, including a code of conduct for persons providing funding.