Urgent note: Russian court decision on third-party disclosure orders in Russian proceedings affects foreign parties

Alert: Russian court decision on third-party disclosure orders in Russian proceedings affects foreign parties Effective: immediately

A recent decision by a Russian arbitrazh court has extended the scope of third-party disclosure obligations in enforcement proceedings, confirming that banks, custodians, and other asset-holding institutions may be compelled to provide information about a debtor's assets — including assets held in the name of affiliated or nominee entities — where the court determines there is a reasonable evidential basis to believe those assets belong beneficially to the judgment debtor. The decision signals a broader judicial willingness to pierce structural barriers between a debtor and its associated asset-holders in the context of enforcement.

Foreign creditors pursuing or contemplating enforcement against Russian counterparties — including trade creditors, institutional investors, and EAEU-resident creditors holding claims in Russian proceedings — face a directly material consequence. Third parties that receive a Russian court disclosure order and fail to comply within the period specified in the order may be exposed to court-imposed financial sanctions and, in certain circumstances, to a finding that the withheld information should be treated as adverse evidence in the proceedings. Foreign-domiciled holding structures and nominee arrangements are within the scope of this developing judicial approach, even where the underlying assets are held outside Russia, if the debtor has registered activities or relationships in the Russian Federation.

Recommended action:

1. Review whether any entity in your corporate structure or enforcement chain holds information about the debtor's assets that a Russian court could characterise as responsive to a disclosure order.
2. Seek immediate confirmation from Russian counsel as to whether a disclosure order has been issued or is anticipated in your current proceedings, and whether any response deadline is running.
3. If a disclosure order has been received, do not assume that a foreign-law privilege or confidentiality obligation will be recognised by the Russian court as a basis for non-compliance — Russian civil procedure applies its own framework for disclosure exceptions, and foreign-law grounds must be positively argued before the court.

For foreign creditors with live Russian enforcement matters or pending asset-tracing proceedings, Vetrov & Partners' Asset Tracing & Recovery practice is available to advise on your disclosure position. See also our full analysis of third-party disclosure orders in Russian proceedings at [/insights/atr-lu-015-third-party-disclosure-orders-in-russian-proc/] and our practical guide at [/insights/atr-pb-015-a-practical-guide-to-third-party-disclosure-o/].

Speak to our team — info@vetrovpartners.com | WhatsApp/Telegram: +7 (983) 510-38-76

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 enforcement strategy, disclosure proceedings, and cross-border asset recovery in Russian courts. 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/