Insolvency of foreign companies in Russia: a new KK&P article for Global Restructuring Review
Previously, Russian courts firmly held the position that foreign companies’ insolvency was only possible in their home jurisdiction. However, in 2022 the investment climate in Russia changed and thorough protection of foreign investments was no longer required. Instead, the need for effective mechanisms to seize foreigners’ assets in Russia has increased.
On February, the Russian Supreme Court (SC) issued its judgment in the case of Westwalk Projects Ltd (a Cypriot company). The SC confirmed the admissibility of initiating insolvency proceedings against foreign companies in Russia and provided broad criteria based on which Russian courts will establish their competence.
In the article Insolvency of foreign companies in Russia – a new norm without a legal norm KK&P Partner and Head of Insolvency Nikolay Pokryshkin analysed the following issues, following a recent decision of the Russian Supreme Court:
- types of insolvency proceedings that could be applied to foreign companies in Russia;
- emerging risks for foreign debtors, their management and creditors, and
- correlation between the SC judgment and Art. 248.1 of the CPC.
Read the full article in Global Restructuring Review (GRR): https://globalrestructuringreview.com/article/insolvency-of-foreign-companies-in-russia-new-norm-without-legal-norm (subscription-based access).