Russian law does not establish any general legal requirement with respect to payment terms. Parties to a civil law contract may set forth payment terms suitable to them. In the absence of payment terms specified by the parties in the contract, the payment shall be made within seven days upon the creditor’s request, unless otherwise envisaged by the provisions of the Russian Civil Code regulating the relevant type of contract.
Thus, pursuant to Article 486(1) of the Russian Civil Code, payment for goods purchased under a sale-purchase contract must be performed immediately before or after the transfer of goods to the buyer. The term ‘immediately’ in practice is often interpreted as meaning‘reasonable’.
In case a customer fails to pay for purchased goods, performed works or rendered services within the term stipulated in the contract, and in the absence of specified contractual penalties, a statutory penalty equal to the key rate set by the Russian Central Bank (currently 5.5% per annum) would apply. In addition, a seller or contractor will be eligible to claim damages exceeding the above statutory penalty.