Moratorium on bankruptcy

First Deputy Chairman of the Government of the Russian Federation A.R. Belousov during a meeting with the heads of regions of Russia, a number of federal departments and representatives of business associations announced moratorium on bankruptcy.

The meeting discussed possible measures to support small and medium-sized businesses in the current situation. A.R. Belousov noted that this and other business support measures should be launched in the coming days and implemented by the regions as quickly as possible.

Recall that since April 2020, the legislator has granted the Government of the Russian Federation the right to impose a moratorium on the initiation of bankruptcy proceedings at the request of creditors to ensure the stability of the economy in exceptional cases.

Last time, the moratorium was imposed due to the spread of a new coronavirus infection for a period of 6 months and was extended once for 3 months (the moratorium expired on January 8, 2021).

The categories of persons to whom the moratorium will apply are still unknown.

During the period of the moratorium in respect of the debtor, including:

• penalties (fines, penalties) and other financial sanctions for non-fulfillment of monetary obligations are not accrued;
• payment of dividends and distribution of profits between the debtor's participants are not allowed;
• foreclosure on the mortgaged property of the debtor is not allowed;
• enforcement proceedings on property penalties are suspended.