Action required: worldwide freezing orders and Russian-situated assets at the freezing and interim relief stage

Alert: Worldwide freezing orders and Russian-situated assets — action required at the freezing and interim relief stage Effective: immediately

Foreign creditors who have obtained, or are in the process of obtaining, a worldwide freezing order covering assets situated in Russia should be aware that Russian civil procedure does not provide for automatic enforcement of foreign interim relief. A worldwide freezing order granted by an English, Dutch, or other foreign court will not, as a general matter, bind Russian courts or compel Russian-domiciled custodians of assets without separate local proceedings. At the freezing and interim relief stage, the window for protecting your position in Russia is typically narrow and depends on parallel action taken promptly under Russian procedural law.

Who is affected. Foreign creditors and distressed investors who hold a worldwide freezing order — or who are preparing to apply for one — covering Russian-situated assets, including real estate, receivables owed by Russian entities, shares in Russian companies, and funds held in Russian financial institutions. Creditors instructing foreign counsel on a WFO application should ensure Russian-law considerations are addressed concurrently, not as a secondary step after the foreign order is sealed.

Recommended action.

1. Instruct Russian counsel immediately upon deciding to seek interim relief abroad, so that parallel Russian protective measures can be evaluated and, where available, filed within the same timeframe.
2. Identify and document Russian-situated assets at the outset — the scope of the WFO must be coordinated with the categories of asset that Russian civil procedure is capable of protecting through its own interim measures framework.
3. Do not assume that notification of the WFO to a Russian counterparty, or to a Russian bank or registrar, creates a binding obligation under Russian law. Separate local measures, applied for in the competent Russian arbitrazh court or court of general jurisdiction, are typically required to freeze assets at the Russian-law level.
4. Keep Russian counsel informed of the foreign court's timetable — Russian interim measures applications are time-sensitive, and delay at the Russian-law stage can result in asset dissipation that the foreign order cannot remedy.

For further context on the procedural interaction between worldwide freezing orders and Russian civil interim relief, see the firm's detailed analysis at Worldwide Freezing Orders and Russian-Situated Assets and the practical procedural guide at A Practical Guide to Worldwide Freezing Orders and Russian Assets. The firm's Asset Tracing & Recovery practice page sets out the full scope of available measures.

To discuss your matter — including parallel Russian proceedings and interim relief strategy — contact the team: info@vetrovpartners.com | WhatsApp/Telegram: +7 (983) 510-38-76

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/