DGP Partner Spoke at the Cross-Border Bankruptcy Conference

The Russian Arbitration Association hosted the conference "Current Issues in Cross-Border Bankruptcy" on June 9, 2026.

At the session "Cross-Border Bankruptcy in the Era of Fragmentation of Legal Systems," Yuri Makhonin, Dispute Resolution Partner at DGP, gave a presentation on "Current Practice of Recognition and Enforcement of Russian Bankruptcy Judgments Abroad."

Yuri Makhonin and a panel of experts, including Elena Mokhova (PhD in Law, Associate Professor and Deputy Head of the School of Business Law at the HSE University Faculty of Law), discussed the following issues:

• Recent precedents on the recognition of Russian judgments by foreign courts;

• Trends in the recognition of Russian bankruptcy judgments by foreign courts;

• Prospects for the recognition of restructuring plans in cross-border bankruptcy.

The conference clearly demonstrated that international cross-border bankruptcy practice continues to evolve and remains a key focus for the legal community, while DGP continues to play an active role in shaping it.

Key Cases:

1.          The case of Valeriy Drelle (UK)

Conclusion: A Russian court judgment on holding a person liable to subsidiary liability cannot establish a debt for the purpose of initiating bankruptcy proceedings in England. The Russian judgment must first be recognized in England. The courts' findings will be reviewed by the Supreme Court of England and Wales, with hearings scheduled for June 2026.

2.          The case of Vadim Chumakov (France)

Conclusion: The French Court of Cassation (First Civil Chamber) ruled that when reviewing a petition for the recognition of a Russian bankruptcy judgment, French courts are required to independently verify compliance with public policy, including a party's right to a fair trial. A mere indication in the Russian court ruling that the debtor was "duly notified" is insufficient. The court must examine the actual circumstances of the notification.

3.          The case of Pichugov and D. & A. Ananiev (Cyprus)

Conclusion: The recognition of an international commercial arbitration award in Cyprus is incompatible with Cypriot public policy if it results in a creditor receiving preferential treatment over the debtor's other creditors within the framework of Russian bankruptcy proceedings. Furthermore, finding a violation of public policy does not require the Russian court judgment declaring the debtor bankrupt to be officially recognized in Cyprus.

4.          The case of Alexander Zheleznyak (US)

Conclusion: The US Bankruptcy Court for the District of Massachusetts denied recognition of the Russian bankruptcy judgment in the US, finding that the debtor had neither a center of main interests (COMI) nor an enterprise (economic activity) in Russia. The debtor's possession of assets in Russia and an active attorney status do not constitute a COMI in Russia. The fact that an Israeli court had previously recognized the Russian proceedings against A. Zheleznyak as a non-main (local) proceeding is of no relevance to the US court.