Lawyer Pavel PetrovLawyer Pavel Petrov

RURU ENEN

Sale of Bankrupt Assets Without an Auction in Russia

A Russian bankruptcy asset may be sold outside the ordinary electronic-auction sequence only where the law and an approved sale procedure permit it; it is not a discretionary private deal. For a company, the special rule concerns an individual asset with balance-sheet value below RUB 100,000. For an individual debtor, Article 213.26 permits an alternative approved by creditors or the court, while real estate and luxury items over RUB 100,000 still require open auction.

A specific legal basis is required

Competitive sale is the default. Any departure must follow the statute and an approved procedure.

The RUB 100,000 tests differ

For a company, Article 139 uses the separate asset’s balance-sheet value at the last reporting date before liquidation opened.

Public exposure still matters

An alternative method must inform an unlimited audience and remain directed at obtaining the highest defensible price.

Quick self-check
  • Identify whether the debtor is a company or an individual.
  • Classify the asset: real estate, security, luxury or restricted asset.
  • Determine the applicable value and valuation date.
  • Find the creditor resolution or court order approving the method.
  • Verify disclosure, buyer access, price and transaction records.

Default Rule and Exception

Article 139 of Federal Law No. 127-FZ sends company assets through Articles 110 and 111 after inventory and, where required, valuation. A lack of bids or a desire to shorten the procedure does not itself authorise a private contract.

An alternative is valid only where the statute permits it and the competent body approves a clear method covering the asset, buyer search, price, timing, disclosure, payment and transfer.

Company Asset Below RUB 100,000

Article 139(5) allows an asset whose balance-sheet value at the last reporting date before liquidation proceedings opened is below RUB 100,000 to be sold under a method approved by the creditor meeting or committee.

The threshold applies to a separate asset, not an artificially fragmented transaction. Connected sales and functional groupings are assessed by substance; fragmentation should not evade the competitive route.

Individual Debtor: Creditor or Court Approval

Article 213.26(3) provides that an individual’s assets are auctioned unless the creditor meeting or court approves otherwise. However, jewellery and other luxury items worth more than RUB 100,000 and all real estate regardless of value must be sold at open auction.

An alternative may therefore be used for ordinary movable assets, but it must appear in the approved sale rules and protect the bankruptcy estate.

Disclosure, Price and Buyer Selection

For low-value company assets, Article 139 requires a method that brings the sale to an unlimited audience. This separates a lawful simplified sale from a closed offer to a preselected buyer.

The approved process may collect offers, publish on an accessible resource, set an application window and award to the best price. The price basis should be auditable through balance-sheet data, market references, condition and storage or sale costs.

Records and Limits

Before the contract, verify inventory, title, value, security, approval, disclosure, received offers and the draft contract. Security, real estate, company interests, restricted assets and special categories remain subject to their own rules.

  1. inventory schedule and identifiers;
  2. balance-sheet value and reporting date;
  3. approved method and disclosure;
  4. register of received offers;
  5. reason for buyer and price selection;
  6. contract, payment and transfer deed.
SituationAlternative possible?Core condition
Company asset below RUB 100,000 book valueYes, under a special methodCreditor approval and disclosure to an unlimited audience
Company asset at or above RUB 100,000Generally noArticles 110 and 139 competitive sequence
Individual’s ordinary movable assetPossiblyAlternative approved by creditors or the court
Individual’s real estateNoOpen auction regardless of value
Individual’s luxury item over RUB 100,000NoOpen auction under Article 213.26
Secured or special assetSeparate analysisArticle 138 and special restrictions prevail

Frequently Asked Questions

May the asset be sold to the first interested buyer?

No. A statutory basis, approved method, public information and auditable price and buyer selection are required.

Is RUB 100,000 the market value?

For Article 139(5), the test is the separate asset’s balance-sheet value at the last reporting date before liquidation opened.

May several cheap assets be combined?

Lots may be formed, but fragmentation or connected sales cannot be used to evade the ordinary process.

Are all individual assets below RUB 100,000 sold privately?

No automatic rule says so. The alternative must be approved, and real estate and high-value luxury are excluded.

Does a failed sale permit a private deal?

Failure alone does not cancel the approved sequence. The rules must be amended lawfully or the required stages completed.

Official Sources

Related guides: asset inventory, valuation and ordinary auctions.

Need to Test a Proposed Sale Method?

An initial consultation can compare the asset, value and approved method without promising an outcome.

BOOK AN INITIAL CONSULTATION

This material is general information as at 28 August 2026. The applicable process depends on the debtor, asset type, value, security and approved creditor or court decisions.