Assets withdrawn from circulation and assets subject to transfer restrictions follow different Russian bankruptcy rules: the former are not sold as estate assets, while the latter may be sold only to legally eligible acquirers. Classification follows the special statute and the asset’s legal status, not a label in an inventory. An error affects the estate, buyer eligibility, auction format and custody costs.
Withdrawn means no sale
The owner is notified and must take the asset or place it with another authorised holder.
Restricted means special sale
The asset is not automatically excluded, but bidders must prove statutory eligibility.
Six months for transfer
If the owner fails to take the withdrawn asset, custody costs shift to it after the statutory period.
Quick self-check
- Identify the asset and its technical characteristics.
- Find the special statute governing transferability.
- Separate the asset owner from the debtor in possession.
- Verify notice, receipt date and the six-month period.
- For a restricted asset, verify closed bidding and eligibility records.
Classify the Legal Status First
Article 129 of the Russian Civil Code distinguishes freely transferable objects, restricted-transfer objects and objects withdrawn from circulation. Bankruptcy accounting labels are not conclusive: the restriction must follow the applicable statute and the records for the specific asset.
Review the debtor’s title, the owner, permits, licences, designated use and transfer prohibitions. The outcome may differ where the debtor only holds an asset owned by another person.
Withdrawn Assets and the Estate
Under Article 132 of Federal Law No. 127-FZ, the insolvency administrator notifies the owner when an asset withdrawn from circulation is identified. It is not treated as an ordinary source of creditor distributions and is not auctioned.
Owner Transfer and Costs
The owner must take the asset or place it with another person within six months after receiving notice. A reliable file should contain the notice, delivery proof, transfer deed, condition record and custody-cost evidence.
If the owner does not perform, Article 132 shifts maintenance costs to the owner after six months unless a special rule provides otherwise.
Restricted-Transfer Assets
A restricted asset is not excluded from the estate merely because transfer is controlled. Article 110 uses closed bidding for a business containing such property, admitting only persons legally entitled to own or otherwise hold it.
The application must include evidence of statutory eligibility. The organiser cannot replace legal eligibility with an arbitrary condition, and a buyer cannot rely only on a future intention to obtain permission.
Build the Asset File
- inventory record and title documents;
- the special statutory transfer restriction;
- owner and debtor-possession basis;
- notice and receipt evidence;
- custody, security and transfer records;
- for a sale, the approved rules, notice and bidder evidence.
Social assets and heritage sites have a separate Article 132 process and should not automatically be classified as withdrawn assets.
| Status | Bankruptcy estate | Next step |
|---|---|---|
| Freely transferable | Normally included | Sale under the approved procedure |
| Restricted transfer | May be included | Closed bidding for legally eligible participants |
| Withdrawn from circulation | Not sold as an ordinary estate asset | Notice and transfer to the owner or its designee |
| Socially significant asset | Special regime | Competitive sale and possible municipal transfer |
| Third-party asset held by debtor | Depends on title | Identify owner and possession basis |
Frequently Asked Questions
Is every licensed asset withdrawn from circulation?
No. Licensing may indicate restricted transfer rather than a complete prohibition on disposition.
Can a withdrawn asset be sold at a closed auction?
No. Closed bidding is used for restricted assets; a withdrawn asset is returned or placed as directed by its owner.
When does the six-month period begin?
On the owner’s receipt of notice, making delivery evidence important.
Who bears custody costs?
Costs must be recorded in the proceeding; after the owner’s non-performance for six months, Article 132 shifts maintenance costs to the owner.
Is every social asset withdrawn from circulation?
No. Article 132 provides a separate competitive sale and transfer route for socially significant assets.
Legal Sources
- Article 110 of Federal Law No. 127-FZ.
- Article 132 of Federal Law No. 127-FZ.
- Article 139 of Federal Law No. 127-FZ.
Related guides: socially significant assets, asset inventory and auction organiser.
Need to Classify a Specific Asset?
An initial consultation can compare the asset records, special regulation and the required transfer or sale process.
BOOK AN INITIAL CONSULTATIONGeneral information as at 28 August 2026. The transferability of a specific asset depends on special legislation and the asset records.