Client alert: Russian development affecting nominee arrangement risks and unwinding under Russian law for US creditors

Alert: Nominee arrangement risks and unwinding under Russian law for US creditors Effective: January 2026

Russian courts and enforcement authorities have materially tightened their scrutiny of nominee arrangements used to hold or shield assets from creditor claims. For US creditors pursuing recovery against Russian-law debtors, the prevailing approach now makes it considerably more difficult to rely on nominee structures as stable holding mechanisms — and simultaneously opens additional avenues to challenge such structures when they stand between a creditor and the underlying asset.

US creditors holding claims under Russian-law instruments — whether arising from trade finance, security arrangements, or arbitral awards — are directly affected where their debtor, or a related entity, has deployed nominee structures to place assets beyond reach. Russian courts have increasingly been willing to look through nominee arrangements and attribute assets to the beneficial owner for enforcement purposes. The same analytical framework that supports asset tracing by creditors has also begun to attract regulatory attention, as FAS Russia and other authorities scrutinise the use of such structures in commercial dealings. Creditors who have not yet mapped the nominee-arrangement risk within their recovery strategy may find that the recovery window narrows without warning.

Recommended steps for US creditors:

1. Audit existing recovery strategy to identify whether nominee arrangements are likely to be interposed between the debtor and attachable assets.
2. Obtain a Russian-law analysis of the specific nominee structure at issue — the grounds for unwinding vary according to how the arrangement was constituted and what evidence of beneficial ownership is available.
3. Consider the timing of enforcement action carefully: Russian insolvency proceedings, once commenced by or against the debtor, impose additional constraints on asset tracing claims and may affect the available grounds for challenging nominee arrangements.

For further analysis of how Russian courts approach nominee arrangements, see How Russian courts approach nominee arrangements in enforcement proceedings and FAS Russia enforcement trends in nominee arrangement cases. The firm's Asset Tracing & Recovery practice advises US and other foreign creditors on recovery strategy in this context.

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 — including US-based institutional and trade creditors — on enforcement strategy, nominee arrangement analysis, and asset recovery in Russian proceedings. 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/