Russian Legislation and the Cape Town Convention
The Regulation of Security Interests in Russia
Chapter 23 of the Civil Code of Russian Federation (CC RF) includes the rules on the security of the performance of obligations. The §1 “The general provisions” in this chapter enumerates different instruments which may be used to secure the performance of obligations (penalty, pledge, withholding of property of the debtor, surety, bank guaranty, deposit of money and other means provided by a statute or a contract). There is also art. 824 in CC RF which provides the rules on the contract of financing with assignment of monetary claim. The contract of financing with assignment of monetary claim reflects the main features of the institute of the International investment law created by the Cape Town Convention.
The conventional rules on registration can have effect only if there is a system of registration of the rights reflecting the interests of the persons financing the acquisition of the equipment in national system of law (the rights in things). In Russian Federation According to Article 130 of the Civil Code of Russian Federation transport vehicles are immovable things. “Immovable things also include the following, if subject to state registration: airships and ocean-going vessels, inland waterway vessels, outer space objects.” (part 2 of Art.130). The right of ownership and other rights in things (property rights) to immovable things, limitation of these rights; the origin, transfer and termination of these rights are subject to state registration in the single state register by the institutions of justice (Art.131 CC of RF). The mortgage is subject to such registration. Thus the equipment such as airships and ocean-going vessels, inland waterway vessels, outer space objects are subject to the registration. That means that the rules of the Convention are applicable to those kinds of
N. Doronina (*)
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S. Kozuka (ed.), Implementing the Cape Town Convention and the Domestic Laws on Secured Transactions, Ius Comparatum - Global Studies in Comparative Law 22, DOI 10.1007/978-3-319-46470-1_8
equipment that are mentioned above. As far as railway and space assets Protocols are concerned, the work on their content is going on in doctrine and in banking legislation. The regime of these objects as movables will be subject to their registration and the rights in the equipment of that kind can be guaranteed as any other form of financing (investments).
The applicability of Cape Town Convention in Russian practice is explained mostly by the effectiveness of the UNIDROIT Convention on leasing of 1988. Russia is a state party to that Convention. The Federal Law of 29-th of October of 1998 N. 164-FZ “On the financial lease or leasing” was formulated on the basis of the general rule of Civil Code, in which §6 of Chapter 34 “Lease” includes the rules on finance lease (leasing). “Under the Contract of finance lease (the contract of leasing) the lessor is obligated to obtain in ownership property indicated by the lessee and to provide the lessee this property for payment in temporary possession and use for entrepreneurial purposes” (art.665 of CC RF). The Law formulated the main purpose - to develop the forms of investments as a means of production. . That means the development of investment legislation in Russian Federation in direction of modernization of civil law relationship. The modern regulation of civil law relationship can ameliorate investment climate and make wider the sphere of applicability of other investment Conventions that like Cape Town Convention promote financing of modern economy.