At the request of DP, Sergei Bakeshin named factors that may lead to an increase in the number of corporate bankruptcies

Due to the introduction of moratoriums on bankruptcy, the development of non-bankruptcy practice of bringing to subsidiary liability, as well as the desire of businesses to settle debt problems before trial, the number of corporate bankruptcies in St Petersburg has been steadily decreasing over the past three years. Last year commercial courts recognised 544 companies as insolvent, while in 2022 and 2021 – 691 and 801 companies respectively.

However, the statistics may change in 2024. According to Sergei Bakeshin, Counsel, Head of Dispute Resolution & Insolvency Practice at Maxima Legal, the growth of corporate bankruptcies may be triggered by increased financial pressure from the government, both in the form of increased fiscal claims and tougher policies towards government contractors.

“Companies will have to cut prices. It will become more difficult to deliver goods and work to government contractors and receive payment. Controlling authorities will check even more closely the reasonableness of prices and proper fulfilment of contracts. We can expect new barriers to foreign trade (restriction of imports of certain goods even through third countries, additional difficulties with settlements). This will create problems not only for companies engaged in foreign economic activity, but also for all those who are tied to the supply of foreign equipment, raw materials, components”, Sergei Bakeshin explained specially for Delovoy Peterburg newspaper.

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