Pledge is regulated by the RF Civil Code (Art. 334-358) and other laws, such as the law On Pledge of 29 May 1992 No. 2872-1, the law On Hypothec (real property mortgage) of 16 July 1998 No. 102-FZ (as amended)...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
The legislation grants exclusive jurisdiction over insolvency cases to the jurisdiction of the arbitrazh (commercial) courts. Bankruptcy proceedings may be instituted by the bankruptcy creditors, authorized agencies, and the debtor itself (Art. 7 of the Federal Law On Insolvency (Bankruptcy) of 26 October 2002 No. 127 FZ; hereinafter – the “Law on Insolvency”)...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
Private arbitration tribunals are getting increasingly popular in Russia. The Russian law allows the parties to remove their existing or future disputes from the competence of the state courts by concluding an “the agreement to arbitrate” or inserting an arbitration clause in their contract. In cases pending before a state court, the agreement to arbitrate may be concluded at any time before the state court makes a decision on the merits. In such cases, the dispute will be subject to the jurisdiction of a private arbitration tribunal...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
To obtain a security for the performance of obligations, a creditor may withhold the things subject to transfer to a debtor or another person designated by a debtor (Art. 359 of the RF Civil Code). The right of withholding in Russian law is effectively similar to liens in common law. It applies not only to contractual but also to quasi-contractual obligations...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
The CPC (Art. 140) and APC (Art. 91) introduce a list of so-called “provisional” or “interim relief” measures designed to prevent concealment of assets by the defendant after initiation of legal proceedings directed against it and to secure enforcement of future judgment...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
Immovable items and everything that is firmly connected with land, i.e. objects that cannot be moved without disproportionate damage to their utilization, are real property. This includes land parcels, subsoil areas, isolated water objects, forests, perennial plantings, buildings and structures. Provisions of law governing rights to real property and transactions with it apply also to aircraft, sea-craft, inland ships, spacecraft and other similar objects (Art. 130 [1] the RF Civil Code). Also a business enterprise as an ongoing economic concern is deemed to be a real property under Art.132 of the RF Civil Code...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
A comprehensive state monopoly on foreign trade was effective in the USSR during socialist times. It was phased out in late 1980s and early 1990s. Today, private persons may conduct foreign economic activity freely, provided that they comply with applicable laws. In particular, compliance with intricate customs, export control and currency regulations is required...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
The concept of “entrepreneurial activity” is the closest in Russian law to the concept of traders or merchants. This concept derives from the type of the activity in which the person is engaged. Entrepreneurial activity is defined as “an independent activity carried out at own risk and directed at the systematic realization of profits from exploiting property, selling goods, performing works, or rendering services.” The definition of an entrepreneur extends to commercial organizations as well as to individual entrepreneurs (solo businessman)...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
The Russian legal system is a continental legal system where statutory law is more important than precedents. In resolving cases, the judges interpret legislation rather than search for a close match in prior jurisprudence. Most legislation is quite recent. It was developed in the 1990s after proliferation of economic and political reforms. Comparative law methods were an important instrument in developing a body of new law. For this reason, different legal institutions derive more or less from laws of different countries. For instance, securities law is based on the US model whereas the RF Civil Code is closer to the European tradition, while bankruptcy law relies heavily on German legislation...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
Bills of exchange, promissory notes, and checks are classified in the Russian law as valuable papers. The category of valuable papers includes also shares of stock, obligations, treasury notes, bills of lading and other documents certifying the economic right. Strict formal rules apply to the form of valuable papers, and especially bills of exchange and promissory notes. Defects of form of valuable papers may render them void or at least deprive such documents of the special status of valuable paper...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
The Russian law does not expressly address “assignment of a contract” as such, but instead regulates assignment of individual elements of the contract such as rights and obligations of the parties. Assignment of rights under a contract is called “assignment of claim”, while the assignment of obligations is called “assignment of debt” (Art. 382 - 392 of the RF Civil Code)...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
In the contract of delegation, one person (a principal) designates and authorizes another person (an attorney) to perform legally binding acts on its behalf and issues a power of attorney to such another person. In this relationship only the principal is bound by actions of the attorney-in-fact within the scope of its mandate...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
A contract is an agreement of two or more persons that constitutes, modifies, or terminates private rights and obligations. General rules on contracts and their formation are included in Chapters 27, 28 of the RF Civil Code. Section IV of part two of the RF Civil Code establishes specific rules applicable to individual types of contracts...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
Special regulation of rights, obligations and guarantees for foreign investors in Russia is implemented through a number of federal and local laws and other legal instruments. The Federal Law On Foreign Investments in the Russian Federation of 9 July 1999 No. 160-FZ (as amended) and bilateral investment treaties of the RF are among the most important acts...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office
The procedure of execution (enforcement) of judicial acts is governed by Section VII of the new Arbitrazh Procedure Code of the RF of 24 July 2004 No. 95-FZ (hereinafter the “APC”), Chapter 47 of Section VI and Section VII of the new Civil Procedure Code of the RF of 14 November 2002 No. 138-FZ (hereinafter the “CPC”), the federal law No. 118-FZ On Court Bailiffs of 21 July 1997 and the Federal Law On Execution Procedure No. 119-FZ of the same date...
by Ilya Nikiforov, managing partner of EPA&P St.Petersburg office