Moratorium on Initiation of Bankruptcy Proceedings from April 1, 2022 to October 1, 2022

In order to maintain and develop the Russian economy, it was decided to suspend the initiation of bankruptcy cases by introducing a moratorium.

Resolution of the Government of the Russian Federation dated March 28, 2022 N 497 “On the introduction of a moratorium on the initiation of bankruptcy cases based on applications submitted by creditors” established a moratorium on the initiation of bankruptcy cases. In accordance with paragraph 1 of Article 9.1 of the Federal Law “On Insolvency (Bankruptcy)”, the Government of the Russian Federation decided:

1. Introduce a moratorium on the initiation of bankruptcy cases based on applications submitted by creditors in relation to legal entities and citizens, including individual entrepreneurs.

2. The provisions of paragraph 1 of this resolution do not apply to debtors who are developers of apartment buildings and (or) other real estate included in accordance with Article 23.1 of the Federal Law “On participation in shared construction of apartment buildings and other real estate and on amendments to certain legislative acts of the Russian Federation” in the unified register of problem objects on the date of entry into force of this resolution.

3. This resolution comes into force on the date of its official publication and is valid for 6 months.

Thus, the moratorium on initiating bankruptcy cases will last from April 1, 2022 to October 1, 2022, unless the period is extended by the Government of the Russian Federation.

The text of the resolution was published on the "Official Internet portal of legal information" (www.pravo.gov.ru) April 1, 2022 N 0001202204010040, in Rossiyskaya Gazeta dated April 5, 2022 N 72

Additionally, on April 1, 2022, an Information Letter from the Federal Tax Service was received. According to this information letter, from April 1, a moratorium on the initiation of bankruptcy cases based on applications from creditors against legal entities and citizens, including individual entrepreneurs, will be introduced for six months. The resolution was signed by the Chairman of the Government of the Russian Federation, Mikhail Mishustin. The moratorium is valid from the date of official publication of the resolution.

The moratorium is not imposed on developers of apartment buildings and (or) other real estate included in the unified register of problem properties.

Applications from creditors to declare a debtor bankrupt, filed with the arbitration court during the moratorium period, will be returned by the court. The same applies to applications filed before the start of the moratorium, but at the time of its introduction were not accepted by the court.

The text of the information letter was not published.

Additionally, we inform you that in accordance with Article 9.1 of the Federal Law “On Insolvency (Bankruptcy)”: To ensure economic stability in exceptional cases, the Government of the Russian Federation has the right to introduce a moratorium on the initiation of bankruptcy cases on applications submitted by creditors for a period established by the Government of the Russian Federation.

Applications of creditors to declare a debtor bankrupt in relation to persons subject to the moratorium, filed with the arbitration court during the period of the moratorium, as well as those filed before the date of introduction of the moratorium, the issue of acceptance of which was not decided by the arbitration court by the date of introduction of the moratorium, are subject to return by the arbitration court.

Any person who is subject to the moratorium has the right to declare a refusal to apply the moratorium to him by entering information about this in the Unified Federal Register of Information on Bankruptcy. After the publication of a statement about a person’s refusal to apply a moratorium in relation to him, the effect of the moratorium does not apply to such a person; in relation to him and his creditors, the restrictions on rights and obligations provided for in this article do not apply.

The duration of the moratorium may be extended by decision of the Government of the Russian Federation if the circumstances that served as the basis for its introduction have not ceased.

If the Government of the Russian Federation extends the moratorium, the previously made statement about the person’s refusal to apply the moratorium in relation to him loses force. In this case, any person who is subject to the moratorium has the right to re-declare the refusal to apply the moratorium in relation to it by entering information about this in the Unified Federal Register of Information on Bankruptcy in the manner established by paragraph three of this paragraph. 

We hope that the information presented will be useful for you and your business!

For additional information and clarification, you can contact our experts:

Stepanov Igor Viktorovich, managing partner, lawyer

Tel.: 8-928-229-95-96, e-mail:istepanov@gratanet.com  

Makarova Inna Alekseevna, partner, lawyer

Tel.: 8-928-160-76-42, e-mail:imakarova@gratanet.com