The Parties may agree to conduct the mediation proceeding before the Permanent Arbitration, but only in disputes with a foreign element. In the case of mediation in domestic disputes, parties have to refer to another institution.
The Law on Mediation in Dispute Resolution defines international mediation as mediation in relations with a foreign element , where the parties at the time of reaching the agreement on mediation have their domiciles or business seats in different states, where the state in which the parties have their domiciles or business seats is not the state in which the preponderant part of obligations arising out of the business relation between the parties is to be performed, or the state which is the most closely connected to the subject-matter of the dispute.
The Permanent Arbitration, upon application by the parties, shall conduct mediation proceeding in disputes which may fall under the jurisdiction of the Arbitration, regardless of whether the parties have agreed in advance that they will first seek to settle their dispute by mediation. A settlement shall be deemed to have been successfully concluded when the parties, after having read the record in which it is noted that they have reached a settlement, sign this record. When the parties make a joint proposal to this effect, the settlement reached in the mediation proceedings may be recorded in the form of an arbitral award.