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Citing Sanctions, Russia Halts New Bankruptcy Proceedings

By Matthew Guerry · 2022-03-08 15:26:08 -0500 ·

The Russian government said the country's tax authorities will not be able to bring new bankruptcy proceedings against debtors beginning Wednesday.

The Russian Federal Tax Service said in a news release last week that it was suspending the initiation of bankruptcy proceedings in response to sanctions imposed by foreign governments for its invasion of Ukraine and to reduce the threat of bankruptcy. The agency said tax authorities will prioritize assisting in debt restructuring efforts and that all "statutory installment procedures and amicable agreements will be applied."

--Editing by Roy LeBlanc.

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