Lawyer Pavel PetrovLawyer Pavel Petrov

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Liability of a Russian Insolvency Administrator

In briefA Russian insolvency administrator is not liable for every poor outcome. A damages claim requires a proven breach of duty, loss and causation. Mandatory insurance and the SRO compensation fund support recovery but do not replace proof and a court decision.

Civil liability

Documented losses may be awarded to the debtor, creditors or other injured persons.

Other consequences

Removal, SRO discipline and administrative liability are separate mechanisms.

No automatic payment

An insurance policy or fund does not pay merely because a party disagrees with the administrator.

Elements of a damages claim

Article 20.4(4) of Law No. 127-FZ links compensation to improper performance and an effective court judgment. The claimant should identify a specific duty, unlawful conduct, the actual amount of loss and a causal connection.

ElementUseful evidenceUsually insufficient
BreachCourt orders, reports, notices, requests and responsesA general allegation of poor work
LossCalculation, bank records, contracts, valuations and estate dataA speculative amount
CausationA timeline showing that the breach produced the lossThe estate’s general lack of assets
StandingRegister entry, status order and evidence of personal lossInterest in the case without an affected right

Insurance and the SRO fund

Mandatory professional-liability insurance is governed by Article 20.5. A payment depends on the statutory and contractual conditions. Article 25.1 creates a separate route to the SRO compensation fund where applicable. The statutory package includes, among other things, a judgment awarding damages and documents about the insurance payment.

Keep remedies separate. A finding that conduct was unlawful, removal from a case and a damages award have different legal tests. One order may be evidence in another dispute but does not always decide it automatically.

Practical sequence

  1. Identify the procedure, appointment period and exact duty.
  2. Collect reports, the court file, Federal Register notices and financial records.
  3. Fix the act or omission and the time the loss arose.
  4. Calculate each loss without duplication.
  5. Test causation and alternative causes.
  6. Identify the proper defendants and insurance or fund route.
  7. Draft relief and evidence for the specific case.

Supreme Court approach

The Russian Supreme Court’s 2025 insolvency review states that only losses caused by identified unlawful conduct of the administrator are recoverable. The counterfactual result of proper performance therefore matters.

Frequently asked questions

Is an unlawful-conduct finding enough?

A money claim normally still requires proof of amount and causation.

Can lost profit be claimed?

Only where the income and causal link can be proven; a hypothetical figure is insufficient.

Does the insurer always pay first?

The route depends on the statute, policy and established insured event.

Is the SRO liable for every member?

The fund operates only under the statutory conditions and document requirements.

Can removal also be requested?

Yes where separate grounds exist, but its test and evidence differ.

Official sources

Related guides: removing an administrator, administrator SROs and administrator remuneration.

Need to assess a loss?

We can review the duty, records, calculation and causation without promising a predetermined result.

Initial consultation