Debt Recovery

To recover money from a Russian debtor, you need a sequence: a formal demand, a court judgment or court order, and then enforcement against accounts and assets. Skipping or rushing a step usually costs months. Attorney Elena Petrova handles recovery of commercial and private debts in Russia for creditors based in the United States, including California, and in other countries, working remotely through a power of attorney.

Before any action, we check the debtor's registry record, open enforcement files, pending lawsuits and signs of insolvency. This tells us whether litigation makes sense or whether the money is already gone.

Demand Letter and Pre-trial Stage

For disputes between businesses, the Arbitrazh Procedure Code requires a written claim before filing. The court will not accept the case until 30 calendar days pass after the claim is sent, unless the contract sets a shorter period. The demand should state the amount, the legal basis, the calculation of interest and a clear deadline.

A good demand letter also works as evidence. It fixes the debtor's position, and a reply that admits part of the debt can interrupt the limitation period. Negotiated repayment schedules are recorded in a signed addendum so that they can be enforced later.

Choosing the Right Court Route

The route depends on the parties and the size of the claim.

The general limitation period under the Civil Code is three years from the day the creditor learned of the breach.

Litigation Strategy

In court, the debtor typically disputes delivery, quality or the calculation of penalties. We prepare the file so that each element is proven: the contract, invoices, acts of acceptance, correspondence and bank statements. Where the debtor may move assets, we ask the court for interim measures, such as freezing accounts, at the time of filing.

Claims can include the principal debt, contractual penalties or statutory interest, and court costs. Foreign creditors should expect documents signed abroad to need an apostille and a certified Russian translation.

Enforcement of the Judgment

A judgment is only a piece of paper until it is enforced. The writ of execution can be sent to the Federal Bailiff Service or presented directly to the debtor's bank. Bailiffs can freeze accounts, seize property, restrict travel abroad for individual debtors and deduct part of salary.

We monitor the enforcement file, request searches for assets and challenge inaction of bailiffs when needed. Direct presentation to the bank is often faster when the debtor's accounts are known.

Bankruptcy as a Recovery Tool

When a debtor ignores a judgment, a bankruptcy petition can change the balance. Once the debt passes the statutory threshold and remains unpaid, the creditor may apply to the arbitrazh court. Proceedings expose asset transfers, allow challenges to suspicious deals and can lead to subsidiary liability of those who controlled the company.

Bankruptcy is a serious step with its own costs. We weigh it against ordinary enforcement case by case.

Cross-border Aspects

Russian courts generally require a treaty or reciprocity to recognise foreign judgments, and the United States has no such treaty with Russia. In practice, a US creditor usually sues in Russia directly. Arbitral awards are a different matter and can be enforced under the New York Convention.

Starting a Recovery Case

Send the contract, invoices, proof of performance and any correspondence with the debtor. You will receive an assessment of the route, timing and the debtor's asset position.

The main channel of communication with the attorney is email: attorneypetrova1@gmail.com.