The Russian government has decided to impose a moratorium on the initiation of bankruptcy proceedings at the request of creditors in respect of individual debtors. The corresponding resolution was published on Saturday, April 4.
“Organizations and individual entrepreneurs whose main activity code in accordance with the all Russian classifier of economic activities is listed in the list of individual areas of activity that have been most affected by the deterioration of the situation due to the spread of a new coronavirus infection,” the statement says about those debtors who have received the right to avoid bankruptcy proceedings.
In addition, organizations included in the list of system-forming organizations approved by the government Commission on improving the sustainability of the Russian economy received this opportunity.
This order comes into force from the date of its publication and will be valid for six months.
The introduction of a moratorium on the bankruptcy of individual companies was announced by Russian President Vladimir Putin on March 25 during his address to the nation due to the situation with the spread of coronavirus. In addition, at the same time, the Russian leader offered small and medium-sized businesses a tax deferral. VAT and insurance premiums will be an exception.
On the eve of this speech, first Deputy Prime Minister Andrei Belousov assured that the authorities will support all sectors of the economy that are at risk, primarily air carriers and tourism. In particular, it is planned to directly subsidize losses and prevent the curtailment of open credit lines of banks.
On April 1, Russian Prime Minister Mikhail Mishustin said that the authorities will make the bankruptcy procedure for individuals free of charge. People will just need to place their own information in the Federal register of bankruptcy information on their own or through the MFC.
As another measure of economic support against the background of the situation with SARS-CoV-2, the Federation Council approved the law on credit holidays for citizens and small businesses in Russia, and Putin signed this document.