In May 1993, a Russian organization (seller)

In May 1993, a Russian organization (seller) and a company based in Cyprus (buyer) entered into a contract according to which the seller had to deliver goods to the buyer in two lots. However, the was not carried out, the contract between the parties was terminated. The buyer in his statement of claim to the ICAC demanded to recover from the seller the amounts of the unpaid advance payment, interest for using other people´s funds, compensation for lost profits and a penalty for late . The seller objected to the buyer´s requirements and simultaneously brought a counterclaim.
In the decision in the case, the arbitrators, justifying the choice of the applicable law, referred, in particular, to the fact that although the contract does not contain the terms of the applicable law, the parties to the dispute, as is clear from the claims in the main and counterclaims, proceed from the application to their relations under the contract of Russian law.