As the Russian economy continues to struggle, issues relating to
insolvency (bankruptcy) remain the priority for both local and
foreign creditors. This article provides an overview of the legal
framework of insolvency proceedings in Russia, with an emphasis on
such pressing issues as challenging "bleed-out"
transactions and liability of controlling persons. We also include
the most recent statistical data, which may be helpful in shaping
the expectations of companies finding themselves in insolvency
scenarios and creditors contemplating their bankruptcy
strategies.
Dynamics of Insolvencies in Russia
Following the economic downturn in the aftermath of the 2008
financial crisis, the number of insolvency applications has been
fluctuating. However, immediately after the imposition of Western
sanctions in 2014, this number jumped by 20%, resulting in more
than 50,000 insolvency applications filed and approximately 41,000
accepted by Russian courts in 2015. The majority
