M.B.: Which year was this?

S.L.: Well, with year, it is difficult to tell exactly which years it was. It was ’60s, about my first appearance in Stockholm. Not as an arbitrator but as an expert to Russian parties involved in that arbitration.

M.B.: So arbitration, Stockholm already then played an important role for arbitration for Russia?

S.L.: Yeah, I believe so. And for me it was important that these two persons whom I respected very much, they told that, perhaps, Stockholm was a good place to have arbitration between Soviet parties, at that time, and the parties from other countries. Not with Swedish companies, but other companies. So providing in contracts that arbitration should be held in Stockholm, such a provision. And they told me that it was a good decision. In spite of the fact that, of course, contracts provided for arbitration in other countries, including London, Paris, yes, but…

M.B.: Why Sweden?

S.L.: Why Sweden? Later, when I became more educated, so to say, the reason was that it was important that different systems to which parties belong, political, economic systems, it was an important factor, were to be taken into account, in the sense that arbitrators were to take that into account, and nevertheless provide an objective, impartial settlement of disputes between Soviet parties, at that time, and parties from other countries with whom arbitration was provided in the contract. So how to do this? That is a very difficult question. Indeed, later I became an arbitrator, and myself participated in various arbitration, and I know how difficult it is to take into account special provisions in Russian laws and special provisions in the laws of the country of the other party. How to take that into account? And so they make an award, which is good for reasonable appreciation. It does not mean, of course, that both parties are always satisfied with the award, of course. There are dissatisfaction to one of the parties, or even to both parties, and so on, but for arbitrators, nevertheless, it is important to make an award which is reasonably judged, which should be considered as impartial and good, appropriate award. I remember, of course, one of my first arbitrations in Stockholm. It was a dispute between a Soviet company and an American company, and it was very interesting case to be remembered by me, for all my years’ life. I was appointed by the Soviet company, and American party appointed Professor John Hazard, and John Hazard was a famous American expert in Soviet law. Very educated, excellent Professor. And the chairman was Mr. Mangård, which was a famous Swedish lawyer, and later, I believe he was the chairman of a meeting between Soviet lawyers and American lawyers about development of optional clause [Речь идет о Факультативной арбитражной оговорке для использования в контрактах в советско-американской торговле, подготовленной ТПП СССР и Американской арбитражной ассоциацией в 1977 г. применительно к арбитражу в Стокгольме – Примеч. сост.].

But it happened later. But at that time it was a dispute, a very difficult case had to be resolved by these three arbitrators. And Professor Hazard was very informed about Russian regulations. It was state monopoly of foreign trade in Soviet Union at that time, and free market in the United States, and how to take all these aspects in our specific case, and it was for Professor Mangård, who was sitting with closed eyes, I remember, I remember him with closed eyes, and listening to Hazard, and listening to me, what we are thinking, and then it was up to him to make an award. To make a final decision. It was really a very difficult case. But for me it was very good example.