Exporting Russian bankruptcy

Dear Ladies and Gentlemen!

The imposition of foreign sanctions against Russia also impacts the prospects of Russian judgments being recognized and enforced in "unfriendly" jurisdictions. Some even believe that these sanctions completely prevent such recognition in bankruptcy cases, as it might indirectly result in the fulfilment of obligations to Russian sanctioned companies.

However, the judicial practice of which we are aware shows that foreign courts seated in "unfriendly" jurisdictions allow the recognition of Russian judgments rendered in bankruptcy cases, albeit with certain restrictions. This situation poses additional risks for foreign shareholders in enterprises that have been declared bankrupt in Russia, while also offering new opportunities for Russian creditors.

You can find examples of cases heard before certain foreign courts after February 2022, where Russian judgments in bankruptcy matters were recognized, along with our recommendations here.