Russian Parliament approves changes to legislation setting out the rules for introduction of a moratorium on insolvency of Russian companies
31 March 2020
As set out in our previous alerter, in his Address to the Nation of 25 March 2020, President Vladimir Putin announced a package of measures intended to mitigate adverse consequences for businesses affected by the Covid-19 outbreak. In implementation of one of these measures, the Russian Government has proposed changes to the insolvency legislation, setting out the rules for introducing a moratorium on the filing of creditors' petitions for the bankruptcy of Russian companies. The changes contained in a draft amendment to the Law on Insolvency (Bankruptcy) were adopted by the State Duma on 31 March 2020 with unprecedented speed (in three readings in one day) and approved by the upper house of the Russian Parliament and will come into force upon signature by the President.