A practical comparison for entrepreneurs operating in the international market
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Agreement with a foreign partner – in what language should the arbitration process be conducted to avoid unnecessary translation costs?
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Did you know that you can agree on the language of the process in the contract in advance—and what will happen if you don’t?
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Which language of the process should I choose when working with Russian-speaking partners from the CIS countries—and does this apply to the New York Convention?
A Latvian company was litigating with an Estonian partner in the Riga Arbitration Court. The language of the proceedings was not agreed upon in the contract. Latvian was the default language. All of the plaintiff’s documents in Russian had to be translated, as did all of the defendant’s documents in Estonian. The translation cost €1,200. The trial was extended by three weeks.
How is process language determined?
According to the Rules of the Riga Arbitration Court, the parties have the right to agree on the language of the proceedings in the arbitration agreement. If no agreement is reached, the arbitral tribunal determines it independently based on the circumstances of the case. By default, and unless otherwise agreed, the language is Latvian.
This means that one line in the contract: “The language of the process is Russian” completely removes the issue and saves money.
Options and their features
Latvian. Mandatory in state courts. In arbitration, it’s the default choice. Pro: the decision is immediately rendered in the state language, simplifying the process of obtaining a writ of execution. Cons: If neither party speaks Latvian, all documents must be translated.
Russian language. Convenient for transactions with partners from the CIS countries and for Russian-speaking participants in the Latvian market. Arbitration tribunals have the right to conduct proceedings in Russian. When a writ of execution is received in a state court, the decision is rendered in Russian; the court only reviews the procedural aspects. When enforcing an order in CIS countries under the New York Convention, a Russian-language decision is generally simpler.
English. Optimal for international transactions with partners from outside the Russian-speaking world. Used for transactions with partners from the EU and other countries. A decision in English is well accepted when executed under the New York Convention in most countries.
How does this affect costs?
If all documents in a case are already in the language of the proceedings, there are no additional translation costs. Each document translation within a case costs between several tens and several hundred euros, depending on its volume. With a large number of documents, costs quickly mount.
Practical calculation: a contract (3,000 words) — €90-150 translation fee. A claim with appendices (10,000 words) — €300-500. Correspondence (5,000 words) — €150-250. Total for a standard case: €500-900 for translations alone.
Recommendations for selection
Transactions only with Latvian partners: the language of the process is irrelevant – everything is in Latvian.
Transactions with Russian-speaking partners (CIS, part of the EU): please indicate Russian. All transaction documentation is already in Russian—no translations required.
Transactions with European or international partners: select English. This is the universal choice accepted in all jurisdictions.
Recommended wording
“The language of the arbitration proceedings shall be [Latvian/Russian/English]. All documents submitted by the parties to the court shall be drawn up in the specified language or accompanied by a certified translation.”
The language of the process is chosen once—when signing the contract. Changing it later is difficult and expensive.
This article is for informational purposes only and does not constitute legal advice.