The Ukrainian company (lessor) leased property (industrial equipment) for a period of 5 years to a Russian joint-stock company (lessee) (location - Moscow). According to the terms of the contract, Ukrainian law is applicable. As the Ukrainian company further found out. The property was transferred by a Russian joint-stock company to a Russian limited liability company. The property was in use of the Russian limited liability company at the place of its registration - in Yekaterinburg. The Ukrainian company appealed to the Moscow Arbitration Court with a lawsuit against the Russian limited liability company, in which it demanded the return of property from someone else´s illegal possession. The lawsuit was substantiated by Ukrainian law. The Russian company objected to the application of Ukrainian law, and, in addition, referred to the lack of competence of the arbitral tribunal to consider this dispute.
Evaluate the parties ’arguments, determine the applicable law and the competent court.
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