Debt collection Russia
Russia has big industrial economy that greatly impacts economical situation not only in CIS and Baltics but the whole world.
Export considerably prevails import with natural resources being the biggest part of it. Foreign trade is very diversified geographically. The main partners in EU countries are Germany, Netherlands, Italy, Poland and France; in Asia – China, Turkey, Japan, South Korea; in CIS – Kazakhstan, Belarus and Ukraine.
Foreign trade is subject of strict regulations, especially in terms of currency conversion and international transfers.
Russian culture is closer to western type of culture though it adopted many aspects of eastern cultures due to wide country geography. Russian culture impacted region very much since Russia politically dominated in Eastern Europe and Central Asia for hundreds years as Russian empire and then USSR.
National language is Russian from Easter Slavic languages group. It is language of trans-national communication all over former USSR and widely known in the whole region. The share of people who knows English grows with years, but still English is mostly language of business and young people in big cities.
The main challenges to collect debt in Russia are:
- Strict currency regulations and official state policy of import substitution makes it hard to pay foreign invoices for local business;
- Local state and business bureaucracy are often reasons of payments delay;
- Cultural barrier and some self-isolation of Russians requires more efforts to collect debt.
How to collect debt in Russia?
Amicable collection is the most effective and cost-saving way to recover debt in Russia. It is advised to refer case to collection when the debt is delinquent over 5 months. The less delinquency is the more chances to collect debt are.
Amicable collection is applicable almost in any case apart from case of debtor’s bankruptcy or liquidation.
Amicable collection is still possible even after statute of limitations (3 years) expired, though chances to collect would be small.
Whether amicable pre-legal collection proves to be ineffective, we check prospects of legal actions to recover the debt. Whether debtor is solvent and prospects are good, we will suggest optimal solution how to recover debt via legal actions in Russia.
What we do to recover a debt in Russia?
- study case details
- find core reason of failing to pay
- find debtor’s decision makers and financial controllers
- resolve language and cultural issues to reach payment agreement between creditor and debtor
- resolve legal and administrative problems to facilitate pending payments
- consult in finances to enable debtor to pay
- consult in local legislation and business threats to convince debtor to pay
- prepare case for legal actions
- file and support claim in court
- support enforcement of court award
How long it takes in Russia?
Average time to recover debt in Russia is 57 days.
What the fees are?
The success fee makes 12% commission from any money recovered.
No collection – no fee policy applies.
For legal collection, fees are calculated individually for every case, depending on nature of the case, debt amount, debtor’s location.
- we have local connections that are crucial to collect debt in Russia.
- we have positive debt recovery experience in Russia
- we know local Russian mentality, procedures, finances and customs
- we understand Russian language
- we charge no fees, unless debt is recovered
- we provide operative reporting
How to send case?
- Send your unpaid invoices and supporting documents for our review.
- Sign our debt collection contract and POA received from the manager.