Alert: important development in coordinating enforcement across Russia and foreign jurisdictions

Alert: important development in coordinating enforcement across Russia and foreign jurisdictions Effective: October 2027

Russian courts have begun applying closer scrutiny to foreign creditors who pursue parallel enforcement steps in offshore jurisdictions without first coordinating those steps with active Russian proceedings. Where uncoordinated enforcement is identified, respondent debtors are raising double-recovery objections and applying for stays of Russian execution. This development directly affects foreign creditors holding distressed assets under Russian law and those running simultaneous recovery tracks across multiple jurisdictions.

Foreign creditors with live Russian enforcement proceedings, or those who hold Russian assets alongside offshore security, face an elevated risk. A creditor that recovers – or is found to have attempted to recover – in a foreign jurisdiction without notifying the Russian court may find its Russian enforcement stayed or its priority position challenged. Under the EAEU and CIS treaty frameworks, coordination obligations between member-state proceedings are now being interpreted more strictly by Russian courts. Creditors who have not reviewed their multi-track strategy since commencing proceedings risk losing enforcement priority – or, in insolvency scenarios, preference-period exposure – through what may appear to be a procedural oversight.

Recommended action:

1. Review any live enforcement strategy that involves parallel proceedings in Russia and one or more foreign jurisdictions, including EAEU and CIS member states.
2. Confirm with Russian counsel that all enforcement steps taken abroad have been, or will be, disclosed to the relevant Russian court or insolvency administrator.
3. Where Russian insolvency proceedings are open or anticipated, assess whether recent offshore enforcement steps fall within the transaction challenge window under Russian insolvency legislation.

To discuss your enforcement position — make an enquiry: info@vetrovpartners.com | WhatsApp/Telegram: +7 (983) 510-38-76

Further analysis of this development is available in our Asset Tracing & Recovery practice briefings, including a detailed review of court practice on coordination: Court practice shift on coordinating enforcement and a risk-point analysis: Key risk points in coordinating enforcement across jurisdictions.

About Vetrov & Partners Vetrov & Partners is a Russian boutique law firm established in 2009, recognised by Pravo-300 for eight consecutive years. The firm's asset tracing and recovery practice advises foreign creditors on Russian enforcement proceedings, cross-border recovery coordination, and distressed asset strategy. Enquiries: info@vetrovpartners.com | WhatsApp / Telegram: +7 (983) 510-38-76 | t.me/vitvetcom

This alert is for informational purposes only and does not constitute legal advice. Vetrov & Partners is a Russian-qualified law firm. Contact info@vetrovpartners.com for advice on your specific situation.

-- Elizaveta Razina Senior Lawyer, Practice Lead -- IP Enforcement, Vetrov & Partners vetrovpartners.com/razina/