Introduction –

Restructurings are likely to be a major topic in the Russian Federation during 2015 and beyond. From a legal perspective, the legislation pertaining to restructurings and insolvencies has benefited from a number of positive developments in recent years. In particular, the amendments which were introduced into the Civil Code1 at the end of 20132 (the Civil Code Amendments) and the Insolvency Law at the end of December 20144 represent a significant step forward. Nevertheless, the Russian legislation still lacks many of the tools and features required to facilitate consensual restructurings, particularly from the perspective of the unsecured creditor.

In this Practical Guide, we highlight the legal and practical issues that a lender is likely to encounter in a Russian restructuring context and attempt to outline possible solutions. While no “one size fits all” approach exists to replace the careful analysis required for each unique restructuring, certain issues are likely to arise and apply more than others. Accordingly, this Practical Guide provides a general overview of the position of a commercial lender in circumstances in which its Russian borrower is in financial distress or insolvency.