On 28 July 2012, the President of the Russian Federation signed a law in relation to a number of important amendments to banking legislation (the “Law”). Except for certain provisions, the Law comes into force on 29 October 2012.

Amendments were made to, among other things, the federal laws on:

  • insolvency (bankruptcy);
  • insolvency (bankruptcy) of credit organisations; and
  • banks and banking activity.

Specifically, the Law:

  • clarifies the timeframes and the scope of information that must be filed with the Unified Federal Register on Bankruptcy Information, including the bankruptcies of credit organisations;
  • sets out the specific steps of the bankruptcy procedure of credit organisations involved in professional activity on the securities market; 
  • explains the separate issues in respect of commercial courts’ taking decisions on recognising a credit organisation as bankrupt and starting bankruptcy proceedings; 
  • stipulates implementing a new mechanism for extinguishing the debt of a credit organisation, such as transferring a credit organisation’s property and obligations to a third party (previously, this procedure was stipulated only by a temporary federal law); and
  • indicates that a court in certain circumstances may reduce the amount of required payment to certain categories of employees of a credit organisation.

[Federal Law No. 144-FZ “On Amending Separate Legislative Acts of the Russian Federation”, dated 28 July 2012]