Protecting Your Interests and Assets in the Bankruptcy of a Bank in Russia
Based on our many years of experience in this area, we can develop and implement a comprehensive strategy to protect your interests in bank bankruptcy in Russia. This strategy includes legal assistance in case of subsidiary liability and criminal prosecution.
BANK BANKRUPTCY IN RUSSIA
- The Takeover of Large and Mid-Size Private Banks in Russia
- The Bankruptcy of Banks in Russia: What is the Purpose and Who Are the Beneficiaries?
- Subsidiary Liability and Criminal Prosecution
- How Can We Help?
Bank bankruptcy in Russia
A customized, comprehensive strategy to protect your interests in Russia and abroad
Analysis of risks in Russia and abroad; implementation of preventive and protective measures
Development and implementation of risk reduction measures and protective actions in court
Legal Protection in Court
Protection of the client's interests in the courts of Russia, the USA, as well as other countries
The Takeover of Large and Mid-Size Private Banks in Russia
The bank bankruptcy in Russia has been one of the central business topics there and abroad for several years. We are witnessing the process of consolidation (if not nationalization) of the entire banking system of the Russian Federation under the state umbrella. The campaign to “clean up” the banking sector began with the new Bank of Russia head Elvira Nabiullina, in 2013. The results of this campaign have been impressive. The number of banks in Russia from 2013 through 2020 decreased from 956 to 372, i.e., more than 2.5 times.
Of course, banking licenses revocations happened before. But never at such a pace. For example, from 2000 to 2012, The Bank of Russia revoked 416 banking licenses, i. e. 35 licenses per year on average. From 2013 to 2020, this number is about 85 licenses per year. Moreover, until 2012 mostly small banks went bankrupt. However, from 2013 to 2020, the Bank of Russia revoked licenses from almost all large and many mid-size private banks.
The Bankruptcy of Banks in Russia: What is the Purpose and Who Are the Beneficiaries?
On the one hand, revocation of a banking license is never without reason. On the other hand, if the Bank of Russia had consistently revoked licenses from the most distressed banks, this would not have been a problem. However, this was not the case here. Instead, the Bank of Russia carried out a kind of “clean-up” of the banking sector to completely subordinate it to state structures and groups of people close to them. As a result, there was a full-scale redistribution of banks’ assets in favor of individuals and groups of individuals who skillfully use administrative resources.
Subsidiary Liability and Criminal Prosecution
As for the redistribution of wealth, the Bank of Russia, and the Deposit Insurance Agency (the Russian state corporation) widely use subsidiary liability and criminal prosecution as means of pressure and intimidation against the owners of private banks.
In the judicial practice of Western countries, subsidiary liability (piercing the corporate veil) is quite rare. However, it is pretty widespread in Russia. In addition to subsidiary liability, such banks’ major shareholders and top managers often become subject to criminal prosecution.
How Can We Help?
It is not surprising that the owners of Russian banks that are in the process of bankruptcy or close to bankruptcy quite often prefer to leave Russia in advance. However, leaving Russia can solve the problems only in the short run.
In the long run, you will need help developing and implementing a set of measures to ensure the security of your interests both in Russia and abroad. Contact us , and we will explain in detail what we can do for you.
QUESTIONS & ANSWERS:
The bank bankruptcy in Russia became so widespread because, since 2013, the Bank of Russia has been conducting a controlled takeover of large and mid-size Russian private banks.
If your persecution is politically motivated, based on the illegal takeover of your property, and you can prove it, then the best place would be the United States. There is no agreement on extradition between the USA and Russia, and the USA does not exchange financial information with Russia.
An American attorney can set up your defense in Russia with a Russian partner law firm, taking care of the protection in other countries and the overall strategy.
Every person in Russia could become a target of political and even criminal pressure. That is why quite often, it makes sense to coordinate a defense strategy from abroad.
Under the Russian Law on Bankruptcy, the bankruptcy proceedings last up to 3 years. However, in the case of banks with significant assets, it can take much longer.
WHAT WE DO
- US Business Immigration
- How to Open a Business in the USA
- Business Dispute in New York
- Trusts and Asset Protection
- Bankruptcy and Subsidiary Liability in Russia