An unpaid supply contract should be analysed as a business-to-business dispute, not only as an overdue invoice. The claim normally depends on what the parties agreed, whether the goods were delivered and accepted, and how the outstanding sum is calculated. This guide explains a careful route for recovering an unpaid supply-contract debt in Russia without treating any outcome as guaranteed.
What is a supply contract?
Under Article 506 of the Russian Civil Code, a supplier acting in business undertakes to transfer goods within the agreed period or periods to a buyer for business or other non-personal use. The title of the document is not decisive by itself: the actual purpose of the transaction, parties, goods and performance documents matter when the relationship is assessed.
Start with the evidence of the transaction
A debt claim is usually stronger when the documents show one consistent chain from agreement to delivery and payment due date. The relevant set may include:
- the supply contract, specifications, orders and amendments;
- invoices, universal transfer documents, waybills and acceptance records;
- documents identifying the authorised recipient or consignee;
- reconciliation statements, correspondence and a pre-trial demand;
- bank records and a calculation separating principal, contractual penalties and statutory interest.
A reconciliation statement or invoice may be relevant evidence, but it should be considered together with the documents confirming delivery, acceptance and the agreed payment terms.
Payment terms and the outstanding amount
Article 516 of the Civil Code provides that supplied goods are paid for in the form and procedure set by the supply contract. If the agreement does not determine them, payment orders are the default method. Where the contract places payment on the buyer or payer and the goods remain unpaid after the agreed date, the supplier may seek payment from the buyer.
Before sending a demand, calculate the principal separately from any contractual penalty and from interest under Article 395 of the Civil Code. Whether amounts can be claimed together, and for which period, depends on the contract and the applicable rules. The calculation should therefore be checked against the delivery dates, payment clause, any partial payments and the wording of the penalty clause.
Pre-trial demand and court claim
Review the contract and procedural rules before filing. They may require a pre-trial demand, specify how notices must be delivered or set a response period. A demand should identify the agreement, delivery documents, the debt calculation, requested payment and the time allowed for a response. Keep proof that it was sent and received, or evidence of the agreed method of delivery.
If the dispute is not resolved, the appropriate court and procedure depend on the parties and the nature of the claim. For a business dispute, the commercial courts commonly require a clear statement of the claim, the legal and factual basis, a debt calculation and supporting documents. A lawyer can assess jurisdiction, limitation issues and the evidence before filing.
Practical checklist
- Match every claimed delivery to the relevant specification and transfer document.
- Check the payment date, notice clause and penalty wording in the contract.
- Record all payments and reconcile the balance as of a stated date.
- Send a reasoned demand using the agreed communication channel.
- Preserve originals and verifiable electronic records for a possible court claim.
Legal framework: Articles 309, 395, 506 and 516 of the Civil Code of the Russian Federation. The result of a dispute depends on the contract, evidence, objections and the court’s assessment.