ARMENIA Law and Practice Contributed by: Narine Beglaryan, Arianna Adamyan and Anahit Aloyan, Concern Dialog
shall not re-examine the applicable law to a contract if a foreign court or arbitration has previously resolved the dispute, unless the decision or award subject to recognition and enforcement in Armenia, contravenes Armenian public order. Armenian courts respect valid agreements between parties to submit disputes to a foreign jurisdiction, as long as such a choice does not violate mandatory jurisdictional rules or Armenian public policy. In circumstances provided for by law, Armenian courts will uphold a waiver of judicial immunity by a foreign state. Specifically, under Armenian legislation, filing a claim against a foreign state, involving it as a third party, imposing attachment on its property located in Armenia, or enforcing a judgment against it is permit - ted only with the consent of the competent authorities of that state, unless otherwise provided by an interna - tional treaty of the Republic of Armenia. However, a foreign state is deemed to have waived its judicial immunity in the following cases: • when it files a claim before an Armenian court and, on its own initiative, participates in the proceedings as a party; or • when it submits a counterclaim in a case (and conversely, it is considered to have waived immu - nity with respect to counterclaims when it has itself initiated a claim in that case). 2.6.6 Domestic Courts’ Recognition of Foreign Judgments/Awards Armenian courts recognise and enforce final foreign court judgments and arbitral awards without recon - sidering the merits of the case. For foreign court judgments, recognition and enforce - ment are permitted if: • there is an international treaty between Armenia and a foreign state; or • a basis for reciprocity exists. The reviewing court does not reassess the substance of the dispute but only verifies whether the judgment
meets the formal requirements under Armenian legis - lation and applicable treaties. The same general rules apply to the enforcement of foreign arbitral awards, particularly under the 1958 New York Convention, to which Armenia is a party. 2.6.7 Judgments in Foreign Currencies Under Armenian law, a lessor cannot obtain a judg - ment strictly denominated in a foreign currency. How - ever, courts may award a monetary sum equivalent to a specified foreign currency amount, expressed in Armenian drams (AMD) and may reference the foreign currency in the judgment. When filing a claim, the claimant must specify the exact amount requested in AMD and provide its pre - cise calculation. The final judgment will be issued in AMD, regardless of whether a foreign currency is used as a reference point. 2.6.8 Limitations on Lessors’ Actions Following Termination Under Armenian law, a lessor’s remedies following ter - mination of a lease due to default are primarily gov - erned by the Civil Code of the Republic of Armenia, which follows the general principle of full compensa - tion for damages. This allows the lessor to recover both actual losses and lost profits caused by the les - see’s breach. If no specific default interest is provided for in the lease agreement, Article 411 of the Civil Code permits the recovery of default interest on overdue monetary obligations at a rate determined by the Central Bank’s refinancing rate, unless otherwise agreed upon or pro - vided by law (however, interest rates must not exceed statutory limits). Following termination of the lease, additional rent (such as holdover rent or continued lease payments) cannot be charged. If the lessee fails to return the aircraft after termination, the lessor may claim com - pensation under mechanisms such as unlawful pos - session, unjust enrichment, or tort-based damages.
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