Introduction
When a Russian counterparty becomes insolvent — or deliberately avoids payment — bankruptcy procedures offer a structured way to recover at least part of the debt and investigate asset transfers.
But for foreign creditors, the Russian bankruptcy system can seem opaque, document-heavy, and procedurally strict.
At RT-Union – Turkish International Law & Consulting Firm, we represent international clients in all phases of bankruptcy litigation, monitoring, and asset recovery.
This 2025 guide explains how Federal Law No. 127-FZ “On Insolvency (Bankruptcy)” applies to foreign claimants — and how to act.
But for foreign creditors, the Russian bankruptcy system can seem opaque, document-heavy, and procedurally strict.
At RT-Union – Turkish International Law & Consulting Firm, we represent international clients in all phases of bankruptcy litigation, monitoring, and asset recovery.
This 2025 guide explains how Federal Law No. 127-FZ “On Insolvency (Bankruptcy)” applies to foreign claimants — and how to act.
Can Foreign Creditors Participate in Russian Bankruptcy Cases?
Yes — Russian bankruptcy law does not distinguish between local and foreign creditors.
As long as the debt is legitimate and properly documented, you may file a claim and take part in court-supervised insolvency proceedings.
Common scenarios include:
As long as the debt is legitimate and properly documented, you may file a claim and take part in court-supervised insolvency proceedings.
Common scenarios include:
- Unpaid invoices
- Broken investment agreements
- Debt following arbitration/court awards
- Fraudulent asset transfers
Key Stages of Bankruptcy Procedure in Russia
1.Initiation (Monitoring Stage / Наблюдение)
2.Creditor Claims Filing
3.Asset Review and Management
4.Sale and Distribution
5.Closure
- Debtor or creditor files a petition (minimum debt: ₽500,000 / ~€5,000)
- Court appoints a temporary administrator
- Debtor’s accounts and operations are frozen
2.Creditor Claims Filing
- Creditors must file within 30 days of publication
- Application includes:
- Original contract/invoice
- Proof of delivery or service
- Payment default evidence
- Certified Russian translation
- Apostilled POA (if foreign claimant)
3.Asset Review and Management
- Administrator identifies assets, contests suspicious transfers
- RT-Union may petition to invalidate fraudulent transactions
4.Sale and Distribution
- Liquidation of debtor assets
- Proceeds distributed based on creditor priority
5.Closure
- If no assets: bankruptcy closed
- If assets found: distribution continues
Where Do Foreign Creditors Typically Lose?
Mistake: Missed filing window
– Consequence: Claim excluded from register
Mistake: Untranslated documents
– Consequence: Application rejected
Mistake: No POA or certification
– Consequence: Procedure delayed
Mistake: Incorrect legal basis
– Consequence: Priority downgraded
– Consequence: Claim excluded from register
Mistake: Untranslated documents
– Consequence: Application rejected
Mistake: No POA or certification
– Consequence: Procedure delayed
Mistake: Incorrect legal basis
– Consequence: Priority downgraded
✅ RT-Union prevents all of the above by handling full creditor filing, translation, certification, and court communication.
Creditor Priorities in Russian Bankruptcy
- Secured creditors (mortgages, pledges)
- Employees (wages, damages)
- Tax authorities
- Unsecured creditors (incl. most foreign suppliers)
- Subordinated claims (penalties, insider loans)
Can You Challenge Fraudulent Transfers?
Yes — Russian bankruptcy law allows clawback of asset transfers made:
RT-Union files legal motions to recover such assets and restore fair distribution to creditors.
- Without fair value
- To related parties
- In the “suspect period” (up to 3 years prior to bankruptcy)
RT-Union files legal motions to recover such assets and restore fair distribution to creditors.
Case Example: Austrian Manufacturer v. Russian Importer (Bankruptcy Recovery)
Austrian company supplied €90,000 in goods, partially paid, then ignored.
RT-Union:
RT-Union:
- Monitored debtor status
- Initiated creditor filing in Samara Arbitrazh Court
- Filed for inclusion into register
- Discovered asset transfer to sister company
- Filed clawback motion — recovered 70% of the debt
Frequently Asked Questions
Can I file as a creditor from abroad?
Yes — RT-Union represents foreign clients by POA and handles the full filing and communication.
What documents are required?
Contract, invoice, proof of service/delivery, correspondence, plus translations and POA.
What if the debtor has no assets?
Even in assetless bankruptcies, RT-Union may request subsidiary liability, fraud investigation, or director sanctions.
Can I enforce a foreign court decision in bankruptcy?
Yes — but it must first be recognized by a Russian court (we handle this as part of the claim).
Yes — RT-Union represents foreign clients by POA and handles the full filing and communication.
What documents are required?
Contract, invoice, proof of service/delivery, correspondence, plus translations and POA.
What if the debtor has no assets?
Even in assetless bankruptcies, RT-Union may request subsidiary liability, fraud investigation, or director sanctions.
Can I enforce a foreign court decision in bankruptcy?
Yes — but it must first be recognized by a Russian court (we handle this as part of the claim).
Why Work with RT-Union – Russian-Turkish Law & Consulting Firm
- Bankruptcy representation in all Russian regions
- End-to-end creditor claims (filing, validation, litigation)
- Clawback actions and fraud recovery
- Documentation and compliance for foreign claimants
- Full support in English, German, Russian, French
We don’t just submit your claim — we fight for its enforcement inside Russian courts.
File or Monitor a Bankruptcy Case in Russia
🕊️ Owed money by a Russian company in bankruptcy?
Let RT-Union file your claim, defend your rights, and maximize recovery.
📞 Free case review and document strategy.
👉 Get Bankruptcy Assistance from RT-Union
Let RT-Union file your claim, defend your rights, and maximize recovery.
📞 Free case review and document strategy.
👉 Get Bankruptcy Assistance from RT-Union
