GILS Dispute Resolution: Russia (2025)
RUSSIA
CASE №1:
Yuliya Zhadan, counsel
A regional water utility (Vodokanal) filed a claim against one of the largest sheet glass manufacturers seeking compensation for negative impact on the centralized wastewater system (Case No. А53-40/2023). Vodokanal based its claim on laboratory samples from the client's discharge point showing exceedances of permitted pollutant levels.
After adverse rulings in both the first-instance and appellate courts, the client retained our firm. We conducted a thorough analysis of all relevant regulations governing sample collection protocols and the testing procedures for the specific pollutants in question.
The court of cassation, followed subsequently by the first-instance and appellate courts upon reconsideration, accepted counsel's arguments that material procedural violations had occurred during the client's wastewater sampling and testing.
Consequently, Vodokanal's claim was dismissed in its entirety.
This case carries significant practical weight, establishing a favorable legal precedent for commercial users facing procedural irregularities in wastewater compliance testing. Early, courts predominantly ruled in favor of Vodokanal in similar disputes.
CASE №2:
Anna Kritsyna, partner, attorney
The team of attorneys at GRATA International provided an effective defense for clients charged with embezzlement of 400 million rubles through alleged inflation of material and labor costs, as well as three counts of money laundering.
Employing a comprehensive approach, the attorneys succeeded in reducing the calculated damages by a factor of 16, secured acquittals on all charges under Article 174.1 of the Russian Criminal Code (money laundering), and obtained release from imprisonment.
The defense proactively prevented both the joint-stock company (the client) and the Russian Federation from being unjustifiably recognized as victims in the case, thereby eliminating the possibility of double recovery for damages.
Through thorough analysis of the project estimates and technical aspects of the work performed, the attorneys demonstrated the unfounded nature of the prosecution’s claims regarding cost inflation.
Despite the investigation’s disregard for the defense’s position, the attorneys refuted the findings of the expert examinations related to material costs. The court accepted the defense’s arguments and ordered an independent expert review, which resulted in the reduction of the alleged damages to 24 million rubles.
As a result of the evidence presented, the defense secured acquittals for all money laundering charges.
CASE №3:
Denis Shestakov, partner
GRATA International represented the interim and insolvency administrator of a major company—one of Russia’s leading suppliers of raw materials and equipment for industrial enterprises—that found itself on the verge of bankruptcy due to tax liabilities amounting to nearly 2 billion rubles.
In the course of the bankruptcy proceedings, assets were identified and recovered, including inventory, accounts receivable, and intellectual property. The team successfully recovered receivables, contested a transaction involving the payment of dividends in excess of 722 million rubles to the company’s sole participant and director, and ensured full settlement of all claims by former employees. The former director was brought to subsidiary and criminal liability.
Nevertheless, affiliated creditors sought to initiate further litigation, demanding that the administrator challenge payments to the state budget exceeding 340 million rubles. After the administrator reasonably refused, the creditors accused him of inaction and, after securing support in all three lower courts, pursued claims for damages against the administrator personally in the amount of over 28 million rubles.
GRATA International successfully defended the administrator against these unfounded claims, ultimately preventing the recovery of over 28 million rubles in damages. Although the appellate court initially satisfied the creditors’ claim, the cassation court and the Supreme Court accepted the arguments presented by our attorneys and denied the opponents’ claims.
CASE №4:
Andrey Borovkov, Counsel, Attorney
The bankruptcy trustee of Metall-Don LLC (the Plant) filed a motion within a separate dispute in the bankruptcy case А53-20723/2019 to hold the former Chief Executive Officer liable for the debtor's debts on a subsidiary basis. The essence of the claim pertained to the execution of invalid transactions with contractors. The total debt of the Plant to banks and other creditors amounted to over 11 billion rubles.
As a result of this dispute (А56-21808/2022), GRATA International successfully demonstrated to the court that during the period of his tenure as Chief Executive Officer of Metall-Don LLC, the Respondent conducted business in compliance with civil law. This was evidenced by the application of the due diligence criterion in the selection of counterparties. Furthermore, his actions contributed to mitigating the company's accounts payable.
The inability to satisfy the claims of Metall-Don LLC's creditors was solely attributable to the objective lack of assets belonging to the debtor. Within the framework of the present dispute, the Chief Executive Officer submitted comprehensive evidence and circumstances. A cumulative analysis thereof leads to the well-founded conclusion that the Chief Executive Officer, who exercised the powers of the sole executive body at the time the transactions challenged by the bankruptcy trustee were concluded, bears no fault. Consequently, there exists no causal link between the actions of the Chief Executive Officer and the occurrence of the insolvency (bankruptcy) of Metall-Don LLC.
The court concluded that there were no grounds for holding Larionov A.V. liable on a subsidiary basis under Article 61.11 of the Federal Law "On Insolvency (Bankruptcy)".
