Clifford Chance

Insolvency Law Amended to Further Protect Collateral Arrangements and Close-Out Netting in Russia

15 January 2020

On 27 December 2019 the Russian President signed into law the latest set of amendments (the "Amendments") to Federal Law No. 127-FZ On Insolvency (Bankruptcy) of 26 October 2002 (the "Insolvency Law").

The Amendments are intended to give greater protection, in the context of insolvency of a Russian counterparty, to collateral arrangements and close-out netting in respect of over-the-counter derivative, repurchase and certain other "financial" transactions documented under eligible master agreements. The Amendments took effect on 8 January 2020 and are summarised below.

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