27 Russian Federation
Edited By: William Johnston, Thomas Werlen, Frederick Link
- Banks and cross-border issues — Monetary obligations — Contractual set-off — Insolvency set-off — Judicial set-off
This chapter examines the legal requirements to a statutory set-off in the Russian Federation. In Russia, statutory set-off is regulated by Articles 410–412 of the Civil Code. From a legal standpoint, set-off constitutes a proper performance of obligations which discharges the respective claims of two parties. The chapter first provides an overview of set-off between solvent parties, focusing on statutory set-off, contractual set-off, and alternative schemes for enforcing contractual set-off arrangements. It then considers set-off in insolvency, with particular emphasis on set-off in bankruptcy proceedings of a corporate entity and of a credit institution. It also analyses key legal issues that may arise with respect to a set-off in the context of cross-border transactions.