Business Bankruptcies in Russia: Risks and Tendencies | News - bellerage.com

Business Bankruptcies in Russia: Risks and Tendencies

According to cross-statistical analyses by Seldon (a Russian Big Data firm), bankruptcies of individual entrepreneurs (IP) during the period January-August 2020 increased by 33.7% y-o-y. By the end of 2020, over 22’000 IP might be insolvent.

The latest increase in IP bankruptcies fits however in a long-term trend, reflecting regulatory specificities introduced in 2015: IPs use actively the facilitated bankruptcy rules or bankrupt not as IPs but as private persons after notifying of the IP’s secession of activities.

Surprisingly, legal entities (LLC etc.) bankrupt 23.8% less y-o-y for the same period. But this too reflects a prior trend existing since 2017. The stronger decrease this year is due to bankruptcy procedures that look particularly costly in times of crisis and recovery chances considered to be even lower than usual, dissuading creditors to undertake legal steps.

Over half of bankruptcies are in 3 sectors: retail, construction, real estate.

Bellerage provides counterparty verification services and can help you minimize the risks associated with doing business in Russia. You can contact us by writing to russia@bellerage.com.


Subscribe to our newsletter and stay updated on the latest developments and events
We are always open to new ideas, solutions and questions
Please contact us via WhatsApp, Telegram or email, or leave us your contacts so that we can contact you as soon as possible
Thank you!

We will revert to you shortly

Leave your email address to stay up to date
Bellerage Online©
Technological Leadership in Financial Outsourcing

Bellerage Online© is a tool for quick and efficient interaction with your outsourcing partner. Monitor financial and administrative processes from anywhere in the world 24/7.

Accessible via web or mobile app, our unique platform allows you to:

  • Communicate with your consultant, create requests and rate our services in real-time,
  • Submit documents for processing,
  • Access your online library with all documents,
  • Sign documents with an e-signature,
  • Automate and control the internal business processes of your company
  • Analyze your financial figures using dynamic online reports

Bellerage Online© is free for our clients and available to an unlimited number of users - from operational staff to headquarter representatives. Available in an English and Russian version.

Sorry

Your browser is not supported