Bankruptcy and Insolvency Procedures in Russia for Foreign Creditors (2025 Guide)
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.
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:
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)
Debtor or creditor files a petition (minimum debt: ₽500,000 / ~€5,000)
✅ 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:
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:
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).
Why Work with RT-Union – Russian-Turkish Law & Consulting Firm