Significant improvements have been made to creditors’ rights in Russian bankruptcy proceedings by amendments made on January 29, 2015. The Federal Laws No. 432-FZ “On Amending Certain Legislative Acts of the Russian Federation” and No. 482-FZ “On Amending the Federal Law on Insolvency and Administrative Offences Code” (together, the Amending Laws) came into force in Russia. The Amending Laws significantly modify the Federal Law “On Insolvency” and, to a certain extent, improve creditors’ rights in Russian bankruptcy proceedings. Further changes come into force on July 1, 2015.
This issue reviews the most important recent changes to the regime of challenging transactions made by debtors in anticipation of insolvency. These changes were introduced in the Resolution adopted at the Plenary Session of the Supreme Commercial Court of the Russian Federation (the “Supreme Commercial Court”) No. 63 “Certain Matters Relating to the Application of Chapter III.1 of the Federal Law “On Insolvency (Bankruptcy)”1 dated 23 December 2010 (the “Resolution”).2
In 2013 bankruptcy case law has been affected by significant changes in the legislation concerning subsidiary liability of controlling persons and on regulating the bankruptcy of certain categories of debtors including developers and financial organisations.
Banking
On 25 October 2013 the Bank of Russia approved Regulation No. 408-P “On the Procedure for Assessing Compliance with the Requirements to Qualification and Business Reputation…”
The Regulation was registered by the Ministry of Justice on 26 December 2013.
The legal regulation of bankruptcy procedures in Russia is actively improving. Evidence of this is the nine federal laws adopted in 2013 which substantially amend Federal Law No. 127-FZ "On insolvency (bankruptcy)" as well as other regulations that deal with bankruptcy regulation. Some of these will come into force during 2014.
Правовое регулирование процедур банкротства в России в настоящее время продолжает активно совершенствоваться. Об этом свидетельствует принятие в 2013 году девяти федеральных законов, которыми были внесены существенные изменения в ФЗ «О несостоятельности (банкротстве)» № 127-ФЗ, а также иные связанные с регламентацией банкротства нормативные акты, часть из которых вступит в силу в течение 2014 года.
This issue considers the most important provisions of the resolution adopted at the Plenary Session of the Supreme Commercial Court of the Russian Federation (the “SCC”) No. 88, dated 6 December 2013, “On Accrual and Payment of Interest on Creditors’ Claims in Insolvency” (the “Resolution”)1. The Resolution resolves a number of important practical issues and creates new regulations governing, in particular:
Russia has continually been working to improve the functioning of its judicial system and the administration of justice for more than two decades. The active reforms began with a decree by the Russian president creating the judiciary as a branch of the state, separate from the legislature and the executive, and these reforms have yet to be completed. In fact, we are now seeing a new level of reform, in which the Supreme Arbitration Court of the Russian Federation will cease to exist and its powers will pass to the newly formed Supreme Court of Russia.
Key point
The English Courts have refused to discharge a bankruptcy order made on the basis of the individual's presence in the jurisdiction for one day only, where Russian asset freezing orders had been broken, the Court misled and in the knowledge recognition of a UK bankruptcy order in Russia was unlikely.
The facts
I. Кредитор не вправе требовать исполнения первоначального обязательства до истечения установленного сторонами срока предоставления отступного (КБ "ЭКОНОМИКС-БАНК" (ООО) v. ООО "Мясное подворье". Дело №ВАС-2504/14)