International Arbitration: How the Procedure Works

Nikita Veremeev

09.09.2025 | 6 min read

Updated: 09.09.2025

Statistics from recent years show that over 80% of transnational companies face international arbitration disputes at least once in the project life cycle. Furthermore, according to the ICC report for 2024, the average size of an arbitration claim exceeded 15 million euros, and the speed of resolving corporate conflicts through arbitration increased by 18% compared to traditional courts. So why is business increasingly choosing the arbitration procedure?

In the context of globalization and the complexity of corporate structures, standard judicial mechanisms often do not meet the requirements for speed, neutrality, and enforceability. Companies face risks of double taxation, conflicts of laws, the need for compliance and AML standards, and the threat of disclosing confidential information.

What to do if a corporate dispute affects the interests of a group of companies in the EU, Asia, and the CIS, and the solution must be recognized and enforced in several jurisdictions? How to ensure transparency of the process, observe public order, and avoid the enforcement gap?

I state: international arbitration is not just an alternative to the courts but a strategic tool for risk management and protecting business interests. In this article, I will detail the stages of the arbitration process, provide practical recommendations on choosing an arbitration institute, formulating an arbitration clause, optimizing costs, and share case studies and life hacks implemented by the COREDO team for clients worldwide.
If you want to understand how arbitration proceedings work, how to ensure the enforcement of arbitration decisions in the EU, Asia, and Africa, and how to integrate an arbitration strategy into corporate governance – I recommend reading the article in full.

International Arbitration: What It Is and Why It’s Needed

Illustration for the section «International Arbitration: What It Is and Why It's Needed» in the article «International Arbitration – How the Procedure Works»

international arbitration is a procedure for resolving disputes between companies from different countries outside of state courts based on the parties’ arbitration agreement. The arbitration process is built on the principles of party autonomy, confidentiality, enforceability, and neutrality.

In COREDO’s practice, international arbitration is applied for corporate, financial, investment, and commercial disputes, including contract enforcement issues, corporate investigations, compliance, and AML.
A key difference in arbitration proceedings: the ability to choose the arbitration court, arbitrators, the place (seat of arbitration), and lex arbitri (applicable law), and ensure recognition and enforcement of the arbitration award in most countries worldwide thanks to the 1958 New York Convention.

Types of International Arbitration: Institutional and Ad Hoc

Depending on the structure and goals of the business, arbitration procedures can be institutional or ad hoc.

Institutional arbitration is conducted under the aegis of arbitration institutes like ICC, LCIA, SIAC, HKIAC, WIPO, etc. These organizations provide process administration, appointment of arbitrators, control of timelines and fees, and apply their own arbitration rules (e.g., ICC Arbitration Rules, UNCITRAL Arbitration Rules).

Ad hoc arbitration: a more flexible model where the parties independently define the rules, appoint arbitrators, and manage the process. This approach reduces arbitration fees but requires high legal expertise and precise wording of the arbitration clause.

Implemented COREDO case: for a group of companies in the EU, we recommended ICC institutional arbitration, which allowed for optimizing timelines and ensuring enforceability of the award in five jurisdictions. For a startup in Singapore – ad hoc arbitration under UNCITRAL rules, which reduced costs by 40%.

Arbitration Clause in an International Contract

The arbitration clause is the foundation of the enforceability of the arbitration process. Typical mistakes in its formulation: lack of indication of the arbitration institute, place of arbitration, language of the hearings, number of arbitrators, and appointment procedure.
COREDO practice confirms: multi-tier dispute resolution (e.g., mediation → arbitration) reduces conflict escalation risks and allows the parties to maintain control over the process.

Best practice – integrating the arbitration clause into every international contract, considering the specifics of jurisdictions, the requirements of the New York Convention, and enforceability in target countries.

Jurisdiction and Lex Arbitri in Arbitration

The jurisdiction of arbitration and the choice of lex arbitri directly affect the enforceability of an arbitration award, the procedure for challenging it, and the role of national courts.

COREDO Recommendation: when choosing the seat of arbitration, consider not only tax and corporate aspects but also judicial practice in recognizing arbitration awards, the presence of a public policy exception, the speed of enforcement proceedings, and the transparency of procedures.

In a case with a corporate dispute in the Czech Republic, the choice of lex arbitri allowed avoiding conflicts of laws and expedited the recognition of the award in the EU and Asia.

Stages of International Arbitration

Illustration for the section «Stages of International Arbitration» in the article «International Arbitration – How the Procedure Works»
The arbitration procedure includes several stages, each requiring strategic planning and expert support.

Filing a Claim with the Arbitration Court

The procedure begins with the submission of a statement of claim and notification of arbitration (Request for Arbitration).
Documents required for filing a claim:

contract with an arbitration clause
evidence of breach of obligations
calculation of the claim amount
confirmation of payment of arbitration fees
information about the parties and the arbitration institute

The solution developed at COREDO for a client in the UK included the preparation of a comprehensive set of documents, taking into account ICC requirements and local legislation, which helped avoid procedural default and expedite consideration.

How to Choose an Arbitrator?

Selecting arbitrators is a strategic stage. Criteria: independence, industry experience, language skills, and expertise in corporate disputes.
Institutional arbitration involves the appointment of arbitrators by the arbitration institute, ad hoc – by agreement of the parties.

The secretary of the arbitration court provides procedural support, records keeping, and timeline control.

COREDO practice: for a financial dispute in Slovakia, an arbitrator with banking sector experience was chosen, improving the quality of expert determination and reducing the risk of challenge.

Procedural Planning and Case Management Conference

At this stage, a procedural timetable is formed, a case management conference is held, the possibility of bifurcation (division of the procedure into stages) is determined, and interim measures are appointed.

Bifurcation allows jurisdictional or liability issues to be considered separately from the calculation of damages, reducing timelines and costs.

Implemented COREDO case: in SIAC arbitration for a group of companies in Asia, we initiated bifurcation, which allowed part of the dispute to be resolved at an early stage and reduced expenses by 30%.

Exchange of Documents and Disclosure of Evidence

Discovery: a key element of due process. Parties exchange evidence, conduct examinations, and question witnesses.

Requirements for evidence vary depending on arbitration rules (ICC, UNCITRAL, LCIA), industry specifics, and the place of arbitration.
COREDO’s team developed a strategy for evidence disclosure for a client in Estonia, including digital evidence and compliance Due Diligence, enhancing the transparency of the process and minimizing procedural default risks.

Hearings: Language, Format, Confidentiality

Arbitration hearings often take place in English, with the possibility of using other languages as agreed by the parties. Format: in-person, online, or hybrid hearings.

Confidentiality in arbitration is a standard enshrined in the rules of ICC, LCIA, SIAC, etc. Breach of confidentiality can lead to challenges to the decision and reputational risks.

In a COREDO case for a client in Dubai, we organized a digital hearing using modern data protection technologies, preserving confidentiality and ensuring due process.

Issuance of an Arbitration Award

The arbitration award is issued following hearings, considering interim measures and settlement facilitation.
Expert determination is applied for complex financial and technical disputes.
In COREDO’s practice, arbitration awards are formulated considering the requirements of the New York Convention, facilitating recognition and enforcement in the EU, Asia, and the CIS.

Enforcement of Arbitration Awards – Risks and Mechanisms

Illustration for the section «Enforcement of Arbitration Awards – Risks and Mechanisms» in the article «International Arbitration – How the Procedure Works»
Enforcement of arbitration awards: a key stage determining the real value of arbitration for business.

Arbitration Awards in the EU, Asia, and Africa

Thanks to the New York Convention, arbitration awards are recognized and enforced in 172 countries. Multilateral agreements on the recognition of awards and local laws provide cross-border enforcement, but enforcement risk assessment remains critically important.

In a COREDO case for a client from Singapore, we conducted a risk analysis of award enforcement in the EU and Africa, identified potential public policy exceptions, and developed a strategy for filing applications in national courts.

The Role of Courts in Ensuring Public Order

National courts play a role in recognizing, enforcing, and challenging arbitration awards.

Public order (public policy exception): grounds for refusal of enforcement if the award contradicts the fundamental principles of the law of the country of enforcement.

COREDO practice: when enforcing an award in the UK, we considered the specifics of local public policy and ensured compliance with national court requirements.

Challenging an Arbitration Award

Challenging (annulment of award) is possible on the grounds of due process violations, lack of jurisdiction, conflict with public policy.

Consequences for business – enforcement delays, additional costs, reputational risks.
The COREDO team accompanies challenge procedures, minimizing the enforcement gap and ensuring client interest protection.

Optimization of the Arbitration Process

Illustration for the section «Optimization of the Arbitration Process» in the article «International Arbitration – How the Procedure Works»
Optimizing arbitration costs and timelines is a crucial task for business.

Optimization of Costs and Timelines

Modern optimization methods:

third-party funding
cost allocation
bifurcation
digital hearings
cost-benefit analysis

In a COREDO case for a client in Cyprus, the application of third-party funding reduced the financial burden on the business and expedited dispute resolution.

Compliance and AML in Arbitration

Adhering to compliance and AML is a mandatory requirement of arbitration institutes and national courts. Compliance due diligence includes checking funding sources, corporate structure, beneficiaries, and adherence to international standards.

COREDO integrates AML consulting into arbitration support, ensuring transparency and protecting businesses from sanctions and reputational risks.

Corporate and Multilateral Disputes, What They Are

Corporate disputes in arbitration require consideration of corporate structure, multi-party arbitration, corporate investigations, and risk allocation.

In a COREDO case for a group of companies in the EU, we implemented a multi-level dispute resolution strategy, allowing control over the process and reducing risks for shareholders.

Technologies and Trends in Arbitration 2025

Trends for 2025:

transparency in arbitration
digital platforms for case management
artificial intelligence for evidence analysis
online case management

COREDO implements digital solutions to enhance the efficiency of arbitration procedures and process control.

Strategies for Business

Illustration for the section «Strategies for Business» in the article «International Arbitration – How the Procedure Works»
An effective arbitration strategy is the key to successful dispute resolution and protecting company interests.

How to Choose a Place and Institute for Arbitration

The choice of arbitration institute (ICC, LCIA, SIAC, HKIAC) depends on the industry, geography, the specifics of the dispute, and the enforceability of awards. The seat of arbitration influences lex arbitri, the challenge procedure, enforcement speed, and costs.

Forum shopping: an optimization tool but requires expert risk assessment.
COREDO conducts a comprehensive analysis when choosing an institute and place of arbitration, considering corporate strategy and business goals.

Arbitration Clause: Mistakes and Recommendations

Common mistakes: no indication of the institute, place, language, arbitrator appointment procedure, multi-tier dispute resolution.
Best practices: clear wording, adaptation to the New York Convention requirements, integration of compliance and AML aspects.
COREDO provides arbitration clause templates considering enforceability and industry standards.

Arbitration in Corporate Strategy: How to Integrate

Integrating arbitration into a corporate dispute management strategy allows optimizing risk allocation, enhancing transparency, and reducing costs.
COREDO develops individual arbitration strategies for groups of companies, considering corporate structure specifics and business goals.

KPI and Arbitration Traffic Metrics

Key metrics:

dispute resolution time
enforceability level of the award
ROI from arbitration
compliance adherence level
cost allocation efficiency

COREDO implements a KPI system for monitoring and evaluating arbitration support efficiency.

Key Conclusions and Recommendations

International arbitration is a strategic tool for resolving corporate, financial, and investment disputes. An effective arbitration procedure requires:

expert analysis of the arbitration clause
correct choice of arbitration institute and place of arbitration
optimization of costs and timelines
adherence to compliance and AML standards
integration of arbitration into corporate risk management strategy

Checklist for Preparing for International Arbitration

Stage	Brief Description	Important Documents/Decisions	Risks and Life Hacks
Preparation	Analysis of the arbitration clause, document collection	Contract, arbitration clause	Check enforceability
Filing a Claim	Notification of arbitration	Claim, confirmation of fee payment	Observe submission deadlines
Selecting Arbitrators	Appointment of arbitrators	Candidates, parties’ consent	Assess independence
Hearings	Presentation of evidence	Documents, witnesses	Prepare for cross-examination
Decision	Receiving an arbitration award	Arbitral award	Check challenge possibilities
Enforcement	Recognition and enforcement of the award	Application to national court	Analyze enforcement risk

For detailed instructions and arbitration clause templates, as well as consultations on choosing an arbitration institute, I recommend contacting COREDO experts – our experience in the EU, Asia, and CIS confirms the reliability and effectiveness of solutions for international business.

International arbitration how the procedure takes place