Russian Courts Make Decisions on Appeals from Belarusian Taxpayers, According to Kommersant
In recent times, there has been an increase in the number of Belarusian debt collection cases being heard in Russian courts. This trend is influenced by a variety of factors, including evolving legal procedures, economic integration, and broader geopolitical and financial conditions affecting Belarus-Russia relations.
One key cause is the shift towards out-of-court and streamlined collection procedures in Russia. Russia is implementing legislation that will allow tax debts and other debts to be collected from individuals without court approval, starting around late 2025. This legislative change aims to speed up collection and reduce court burdens, potentially leading to more Belarusian debt cases appearing in Russian courts when challenges arise or enforcement is needed.
Another factor is the close economic ties between the two countries. Given the context of the Eurasian Economic Union, Belarus entities and individuals may have debts that become subject to Russian jurisdiction. This increases the flow of Belarusian debt matters to Russian courts and bailiff services.
Sanctions regimes against Russia and Belarus, managed notably by the U.S. Treasury’s OFAC and the EU, have also played a role. Specific Belarus-related sanctions exist alongside Russian ones, affecting the ability of Belarusian entities to resolve debts domestically and possibly pushing cases into Russian courts where enforcement tools differ.
Aside from Russian courts, Belarusian debt collection cases may also implicate jurisdictions involved in sanctions enforcement and cross-border financial controls, such as the EU, U.S., and even third countries where assets or transactions are traced. The legal environment includes Belarusian courts for initial disputes but often relies on Russian courts or bailiffs for enforcement when assets or debtors are in Russia.
Experts attribute the increase in such cases to the migration of debtors and their assets to Russia. In the past six months, Belarusian tax inspectors have approached Russian courts at least seven times to enforce debt collection decisions. Russian courts have examined whether there are grounds for refusing to recognize and enforce Belarusian court decisions.
In six cases, Russian courts have accepted jurisdiction based on the debtor's presence in Russia. In most cases, Russian courts have recognized the claims made by Belarusian tax inspectors as valid. However, one case was rejected due to the expiration of the three-year deadline for enforcing the decision.
Belarusian authorities are aiming to seize the assets of debtors whose whereabouts have been traced to Russia. Russian courts have requested information about debtors and their assets in Russia from the Federal Tax Service, Rosreestr, and the Ministry of Internal Affairs of Russia. The migration of debtors and their assets to Russia has been actively tracked by Belarusian tax authorities.
The overall trend indicates a pattern of Belarusian authorities seizing assets of debtors in Russia, and this is not limited to cases involving Russian citizens. The newspaper notes that this pattern is a reflection of the complex interplay of economic, legal, and geopolitical factors shaping Belarus-Russia relations.
- The shift towards out-of-court collection procedures and the implementation of legislation in Russia that allows tax debts to be collected without court approval, starting from late 2025, may lead to an increase in Belarusian business disputes being settled in Russian courts.
- The close economic ties between Belarus and Russia, particularly within the Eurasian Economic Union, may contribute to an increase in Belarusian finance-related matters being addressed by Russian courts and bailiff services, as Belarus entities and individuals may have debts subject to Russian jurisdiction.
