BGP Litigation partner Alexander Vaneev speaks with Vedomosti about specifics of dispute resolution through mediation (in the context of the dispute between Inter RAO and Ecuador over supplies of equipment for power stations)

"In many countries a mediation center is an institution that organizes negotiations and reconciles the parties with the participation of a third party who helps find a compromise, explains Alexander Vaneev, partner at BGP Litigation. Usually mediation is chosen as a faster and less expensive alternative to arbitration or litigation, he says. The problem is that such an agreement carries no guarantee that one of the parties will not breach it". 

Expanding on his earlier comments, Alexander Vaneev says that the involvement of such a third party is the defining aspect of mediation compared to regular negotiations involving no one other than the parties themselves. If mediation is successful, the parties enter into an agreement in which they set out in writing the compromise they have reached.

Judging from reports, adds the BGP Litigation partner, one could conclude that up until recently there were no significant points of disagreement between Inter RAO and Ecuador over the project. It seems that the problems encountered were probably expected to be resolved in the normal course of work between the partners. Turning to mediation in such a situation is the most natural approach, as constructive dialogue is still a possibility.

The full article (in Russian) is available here: "«Интер РАО» может лишиться контракта в Эквадоре".