Russia collection profile

Russia-bnr

 

Collecting in Russia

  • The payment behavior of domestic firms is poor and often the businesses themselves have complex legal structures. Payment terms are not fully regulated and interest on late payment is common.

  • Courts can be fairly efficient when a debt is certain and undisputed, but legal proceedings may otherwise be complex (no default judgments, no fast track proceedings above EUR 4,000 even if the debt is certain and undisputed) and cannot be avoided through Alternative Dispute Resolution methods(which is not relied upon) or through foreign courts (since Russian courts apply extremely strict jurisdictional exclusivity rules).

  • Insolvency proceedings ought to be avoided. A debt renegotiation mechanism isindeed available, although it is unused in practice. Liquidation is therefore the default procedure, but unsecured creditors would have very limited chances of recovering their debt.

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    russia

    Russia

    Collection complexity

    severe-2


    Collection relating to

    Payments
    $-4
    Court
    proceedings
    Gav-4
    Insolvency
    proceedings
    Arrow-4
     

    Russia

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