Russian insolvency of foreign companies: an emerging and growing risk
The exposure of assets, both those of foreign companies themselves and of their connected persons, is growing, and withdrawal from the Russian market and the “sanctions shield” are no longer adequate protection on their own.
In the first article of a three-part series for Global Restructuring Review, Nikolay Pokryshkin, KK&P Partner, Head of Insolvency, and Mark Vaskovskiy, Senior Associate, explain that Russian creditors now have an ever-expanding toolkit to put pressure on foreign debtors, both inside and outside Russia.
The article covers:
- Foreign companies in Russian insolvency: how a former Russian business can become a gateway to insolvency proceedings against a foreign company – even after it has left the market;
- Connected persons in the crosshairs: how liability can reach directors, ultimate owners and affiliates abroad, and what transactions, acts and payments may be challenged;
- Enforcement beyond Russia: whether a Russian insolvency judgment stays within Russia or can be recognised and enforced in the EU, England, the US, Asia or the Middle East, and why the usual sanctions and jurisdiction defences may weaken in an insolvency context.
Read the full article (subscription-based access): https://globalrestructuringreview.com/article/russian-insolvency-of-foreign-companies-emerging-and-growing-risk