Kommersant: The number of bankruptcy notices in Russia increased by 2.4 times over the year

The number of messages from creditors about their intention to bankrupt a debtor soared 2.4 times in October, and by 42% in November. Experts attribute the increase in the number of notifications to the lifting of the moratorium on bankruptcy, but in the near future the moratorium will fade into the background, and the main reason for the growth will be the worsening economic situation and the fall in the purchasing power of Russians. This was written by Kommersant, which studied the statistics of notifications of filed bankruptcies.

A bankruptcy notice is a necessary legal process that follows before a lender wants to file a bankruptcy claim against their borrower. In Russia, from April 1 to October 1, 2022, there was a moratorium on bankruptcies of legal entities, so creditors simply could not bankrupt their borrowers for a long time. With the lifting of the moratorium, a sharp surge was recorded: the number of notifications increased by 2.4 times, from 2306 in October 2021 to 5953 this year.

“The lifting of the moratorium led to an avalanche-like growth in declarations of intent and will entail the same growth in bankruptcies in the future,” Serhiy Savosko, a lawyer at the Delcredere Bar Association, told the publication.

However, in November, the indicator also showed a sharp increase, although the effect of pent-up demand should have been significantly reduced. According to the results of the month, 3327 notifications were recorded, which is 42% higher than the same indicator for the last year (2341 pieces). Experts attribute such figures not to the effect of the lifted moratorium, but to the growing problems faced by entrepreneurs. Lawyers note that the number of notifications began to grow at the beginning of the year: in January-March, their number increased by a total of 6.4%, these figures may indicate a long-term trend of deterioration in the business situation.

“As the economic situation in the country and the world becomes more difficult, the imposition of sanctions and restrictions, the business structure is changing, purchasing power is decreasing, companies have to look for new opportunities and sales markets, and not everyone is able to reorganize,” says Rimma Malinskaya, partner in the commercial disputes practice at MEF Legal.

Experts do not expect a fundamental decrease in the number of bankruptcy notices in the near future – on the contrary, they are confident that the upward trend will only continue in the near future and will end no earlier than the middle of next year or with a sharp improvement in economic conditions. In particular, the simplification of lending for businesses or a new moratorium on bankruptcy could "correct" the negative statistics.

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