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Recognition of foreign proceedings
Under what circumstances will the courts in your jurisdiction recognise the validity of foreign insolvency proceedings?
There is no specific law in Russia relating to recognition of foreign restructuring or insolvency proceedings. However, the decisions of foreign courts relating to bankruptcy proceedings in foreign countries are recognised and enforced in Russia based on international treaties and the principle of reciprocity.
Bankruptcy proceedings against Russian companies can be commenced only in Russia. If proceedings are initiated against a Russian company in a foreign court, any resulting bankruptcy awards will not be enforced in Russia.
Winding up foreign companies
What is the extent of the courts’ powers to order the winding up of foreign companies doing business in your jurisdiction?
Russian bankruptcy proceedings can generally be commenced only in relation to a Russian registered company. Thus, companies incorporated in a foreign jurisdiction cannot be restructured in Russian courts. However, foreign creditors may initiate proceedings against a Russian debtor in the Russian courts.
Centre of main interests
How is the centre of main interests determined in your jurisdiction?
The concept of a ‘centre of main interests’ does not exist in Russian legislation. Bankruptcy proceedings against Russian companies can be initiated only in the Russian courts.
What is the general approach of the courts in your jurisdiction to cooperating with foreign courts in managing cross-border insolvencies?
The decisions of foreign courts relating to bankruptcy proceedings in foreign countries are recognised and enforced in Russia based on international treaties and the principle of reciprocity. There is no Russian law relating to recognition of foreign restructuring or insolvency procedures. Therefore, there is no cooperation between Russian and foreign courts in respect of the administration of cross-border insolvency cases.
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