Medvedev says coronavirus should be acknowledged force majeure

MOSCOW, Apr 15 (PRIME) -- The coronavirus pandemic should be acknowledged as a force majeure for businesses and to be used at court or in contract disputes, Dmitry Medvedev, chairman of the ruling party United Russia said on Wednesday following a conference with representatives of businesses.

Every contract has a force majeure clause, but it has not been as important in the economic sense as it is now. “We will likely have to think about it and have consultations…regarding application of the force majeure clauses. It would be great if the Chamber of Commerce and Industry also contributes to that,” he said, adding that some issues would still have to go through courts.

“We understand that, and I hope that colleagues that represent the business community understand that as well. The practice that is being formed now should be favorable for the representatives of businesses…I have been working on these legal issues for my whole life. If a pandemic is not a force majeure, then what is? It usually describes natural phenomena and the acts of authorities. In this case, it is both.”

The condition of businesses is dire during the COVID-19 pandemic, and it looks like collapse of some industries. Still, not only Russia is facing that. Other countries are preparing their answers to the situation, and Russia has to do it too, he said.

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