Insight

Russian Law of Contracts

Russian Law of Contracts
AK

Alexander Khrenov

January 4, 2017 12:00 AM

On February 20, the State Duma (lower house of the national Parliament) enacted amendments to the Civil Code. The legislative reform has introduced certain foreign law instruments into the Russian legal system and broadened the scope of application of the existing legal remedies.

For example, pursuant to Article 308.3 of the Civil Code, specific performance is now available in respect to a basically unlimited range of obligations (provided it does not conflict with the contract’s terms or law). It is not quite clear at this point how courts will treat the updated version of specific performance, but the legal community expects that this remedy is not to be used in the context of personal service contracts. The very same Article 308.3 also embeds the Russian analogy to the French astreinte—a monetary penalty for the debtor’s failure to comply with court’s orders, accrued daily and awarded to the creditor.

Another novelty is the introduction of intercreditor agreements regulating creditors’ relationships inter se with regard to the procedure for claims settlement. In particular, creditors may agree on a specific order of claims satisfaction. Should a creditor act in violation of his intercreditor arrangements, the consideration received by him will be transferred to another creditor in a different obligation.

The year 2016 has seen significant legislative developments in Russian contract law.

The new version of Article 310 cancels the universal ban on unilateral cancellation or alteration of a contract. Business-to-business contracts are currently not covered by such bans, given the parties thereto contractually agreed that either one or both of them shall have this right. Article 310 further sets forth that the exercise of a right of unilateral cancellation or alteration can be subject to payment of a specified sum of money to the contract counterparty.

One of the most frequently commented amendments is found in Article 333 of the Civil Code, which states that a court may no longer ex officio reduce an amount of contractual penalty payable under a commercial contract, save in exceptional circumstances.

To summarize, the Russian legislature undertook serious efforts to bring the national contract law in line with the world’s most progressive legal systems. It however remains to be seen if the judiciary are ready to follow suit.

Related Articles

Contracts and Translations


by Christian Ray Pilares

Working with manufacturers in China can be profitable but challenging. Third party services like law firms and translation services can be helpful.

Safeguard Working with Chinese Manufacturers

An Interview With ALRUD Law Firm


by Best Lawyers

Russia’s 2020 “Law Firm of the Year” in Labor and Employment Law

An Interview With ALRUD Law Firm

Q&A with Florian Schneider, Managing Partner of Dentons Russia


by Best Lawyers

A question and answer session with Florian Schneider, the managing partner of "Law Firm of the Year," Dentons Russia.

Florian Schneider – Dentons Russia

An Overview of Russia


by Anton Novoseltsev

The approval is only required if it is requested by a member of the supervisory board, a member of the executive board, a CEO, or a 1 percent shareholder.

Overview of Russia

Changes in the Legal Regulation of Foreign Investment in Russia


by Artem Zhavoronkov and Oleg Lovtsov

Introducing significant changes in the legal regulation of foreign investment in the Russian Federation.

Foreign Investment Russia

Employers Now Face Greater Liability for Violations of Legislation on Employee Compensation


by David Denisenko and Alexei Dingin

Employee Compensation

Trending Articles

The 2024 Best Lawyers in Spain™


by Best Lawyers

Best Lawyers is honored to announce the 16th edition of The Best Lawyers in Spain™ and the third edition of Best Lawyers: Ones to Watch in Spain™ for 2024.

Tall buildings and rushing traffic against clouds and sun in sky

Presenting The Best Lawyers in Australia™ 2025


by Best Lawyers

Best Lawyers is proud to present The Best Lawyers in Australia for 2025, marking the 17th consecutive year of Best Lawyers awards in Australia.

Australia flag over outline of country

Best Lawyers Expands Chilean 2024 Awards


by Best Lawyers

Best Lawyers is pleased to announce the 14th edition of The Best Lawyers in Chile™ and the inaugural edition of Best Lawyers: Ones to Watch in Chile™, honoring the top lawyers and firms conferred on by their Chilean peers.

Landscape of city in Chile

Best Lawyers Expands 2024 Brazilian Awards


by Best Lawyers

Best Lawyers is honored to announce the 14th edition of The Best Lawyers in Brazil™ and the first edition of Best Lawyers: Ones to Watch in Brazil™.

Image of Brazil city and water from sky

Announcing The Best Lawyers in South Africa™ 2024


by Best Lawyers

Best Lawyers is excited to announce the landmark 15th edition of The Best Lawyers in South Africa™ for 2024, including the exclusive "Law Firm of the Year" awards.

Sky view of South Africa town and waterways

The Best Lawyers in Mexico Celebrates a Milestone Year


by Best Lawyers

Best Lawyers is excited to announce the 15th edition of The Best Lawyers in Mexico™ and the second edition of Best Lawyers: Ones to Watch in Mexico™ for 2024.

Sky view of Mexico city scape

How Palworld Is Testing the Limits of Nintendo’s Legal Power


by Gregory Sirico

Many are calling the new game Palworld “Pokémon GO with guns,” noting the games striking similarities. Experts speculate how Nintendo could take legal action.

Animated figures with guns stand on top of creatures

The Best Lawyers in Portugal™ 2024


by Best Lawyers

The 2024 awards for Portugal include the 14th edition of The Best Lawyers in Portugal™ and 2nd edition of Best Lawyers: Ones to Watch in Portugal™.

City and beach with green water and blue sky

The Best Lawyers in Peru™ 2024


by Best Lawyers

Best Lawyers is excited to announce the landmark 10th edition of The Best Lawyers in Peru, the prestigious award recognizing the country's lop legal talent.

Landscape of Peru city with cliffside and ocean

How To Find A Pro Bono Lawyer


by Best Lawyers

Best Lawyers dives into the vital role pro bono lawyers play in ensuring access to justice for all and the transformative impact they have on communities.

Hands joined around a table with phone, paper, pen and glasses

Presenting the 2024 Best Lawyers Family Law Legal Guide


by Best Lawyers

The 2024 Best Lawyers Family Law Legal Guide is now live and includes recognitions for all Best Lawyers family law awards. Read below and explore the legal guide.

Man entering home and hugging two children in doorway

The Best Lawyers in Colombia™ 2024


by Best Lawyers

Best Lawyers is honored to announce the 14th edition of The Best Lawyers in Colombia™ for 2024, which honors Colombia's most esteemed lawyers and law firms.

Cityscape of Colombia with blue cloudy sky above

Announcing the 2024 Best Lawyers in Puerto Rico™


by Best Lawyers

Best Lawyers is proud to announce the 11th edition of The Best Lawyers in Puerto Rico™, honoring the top lawyers and firms across the country for 2024.

View of Puerto Rico city from the ocean

Announcing The Best Lawyers in New Zealand™ 2025 Awards


by Best Lawyers

Best Lawyers is announcing the 16th edition of The Best Lawyers in New Zealand for 2025, including individual Best Lawyers and "Lawyer of the Year" awards.

New Zealand flag over image of country outline

Announcing The Best Lawyers in Japan™ 2025


by Best Lawyers

For a milestone 15th edition, Best Lawyers is proud to announce The Best Lawyers in Japan.

Japan flag over outline of country

Canada Makes First Foray Into AI Regulation


by Sara Collin

As Artificial Intelligence continues to rise in use and popularity, many countries are working to ensure proper regulation. Canada has just made its first foray into AI regulation.

People standing in front of large, green pixelated image of buildings