Set-Off in Russian Bankruptcy: Restrictions, Risks and Evidence

27.08.2026

Short answerMatching monetary claims alone do not make a set-off safe in Russian bankruptcy. Timing, claim status and creditor priority must be checked. A set-off that bypasses statutory priority after proceedings begin is restricted, while a pre-filing set-off may be avoided as a preference.

Civil Code conditions

Claims must be mutual, homogeneous and mature for set-off.

Priority prevails

Set-off must not provide individual recovery outside the collective process.

Pre-filing risk

A set-off made before the petition can still be reviewed as a preference.

Four-level review

Level	Required finding	Warning sign
Mutuality	Each party is debtor and creditor of the other	A claim belongs to a third party
Homogeneity	The result mirrors mutual performance	Money is matched against delivery of an asset
Maturity	The active claim is due or lawfully accelerated	Declaration predates Civil Code conditions
Bankruptcy	Register and current-payment priority remain intact	One creditor receives more than in the process

Civil Code Article 410 permits unilateral set-off, but Bankruptcy Law protects collective and proportionate creditor recovery. A set-off valid outside insolvency may therefore be restricted or avoided in bankruptcy.

An accounting entry is not decisive. Courts examine delivery of the declaration, the origin and maturity of both claims, the real asset effect and the position of other creditors.

Workflow

Build the timeline

Map contracts, performance, defaults, the declaration, petition acceptance and procedure dates.

Classify both claims

Separate register and current claims, principal, interest and sanctions.

Compare with priority

Measure actual recovery against the statutory distribution outcome.

Review avoidance periods

Assess preference indicators, knowledge and ordinary-course evidence.

Documents

contracts creating both claims;
acts, deliveries, reconciliations and payments;
set-off declaration or agreement and delivery proof;
claim calculations at the set-off date;
EFRSB notices and bankruptcy orders;
creditor and payment-priority evidence.

FAQ

Can claims be set off during observation?

Only where special bankruptcy restrictions and creditor priority are not breached.

Is a reconciliation act enough?

Usually no; it does not replace a clearly delivered set-off declaration or agreement.

Can current claims be set off?

Current-payment priority and the actual effect must be reviewed separately.

What follows avoidance?

Both obligations are restored subject to Bankruptcy Law Article 61.6.

Official sources

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