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(Russia) NON-Fulfillment of Commercial Contracts in Connection with Coronavirus

The governments of different countries have taken measures in connection with the threat of infection with Coronavirus. Such measures may affect the ability to fulfill obligations under commercial agreements both by your company and by your counterparties with respect to your company. So, for example, measures associated with the closure of enterprises, factories, may affect the ability to purchase and supply certain goods. Measures in connection with the transfer of employees to quarantine can slow down or suspend business processes.

The possibility of using force majeure circumstances (Article 401 of the Civil Code of Russia) or other legal instruments (Articles 416, 417, 451 of the Civil Code of Russia) in order to fully or partially refuse to fulfill obligations under a commercial contract should be assessed from the point of view of applicability to each specific obligation.

In other words, Coronavirus is not an automatic reason for terminating the contract. Otherwise, the company may receive a lawsuit in the future to recover damages.

Lawyers of WatersOAG will conduct a legal assessment of the contracts and the nature of the obligations, as well as specific circumstances that can or cannot be used as the basis for a complete or partial refusal to fulfill obligations in your case.

How can we help:
  • Assessment of commercial contracts and substance of obligations.
  • Assessment of the possibility of using Coronavirus as a circumstance for a complete or partial refusal to fulfill obligations (due to Articles 403, 416, 417 or 451 of the Civil Code of the Russian Federation) under the contract.
  • Preparation of a notice to counterparties on a complete or partial refusal to execute contracts in connection with Coronavirus.
  • Assessment of risks of refusal to execute contracts.
  • Legal assessment of positions of counterparties that violate the fulfillment of obligations referring to Coronavirus.