In accordance with Russian legislation, certain types of agreements (e.g., agreements on the lease of buildings/constructions concluded for 1 year or more, agreements on the sale of enterprises, etc.) are subject to the state registration by the authorized Russian state authority.

An assembly of Russia’s Highest Arbitration Court issued decree No. 35 “On the Consequences of the Termination of a Contract” which, inter alia, sets out the actions which parties wanting to terminate a contract which is subject to state registration should take to unilaterally terminate it. Where a contract provides a party with a right to refuse to perform its obligations under the contract without cause, then that party can unilaterally file the termination of the contract with the registration authority. The applicant should provide the registration authorities with evidence that the other party has been notified of its refusal to perform its obligations under the contract.

Where an application has been made to unilaterally terminate a contract is in relation to, inter alia, breach of contract, or any circumstances which are subject to additional examination, then both parties to the contract should file their respective application with the registration authority. If the other party refuses to file an application, then the party which declared its refusal to perform the contract is entitled to file a claim with the court to have the contract declared terminated. The court’s decision on the contract’s termination shall be sufficient grounds for the registration authority to enter the relevant termination record into the register.

Note: We note that as a result of the recent merger of the Supreme Court with the Highest Arbitration Court of Russia the latter was abolished. However, all the decrees issued by the Highest Arbitration Court of Russia are valid until they are amended by the assembly of the Supreme Court of Russia.