Legal term for payments in Russia

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.

For instance, 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 ‘reasonable’. 

As noted above, Russian law does not specify any general legal requirement with regard to payment terms. Parties to a contract are free to establish payment terms as they deem appropriate.

This is not applicable as there is no standard payment term (please see above).

This is also not applicable as there is no standard payment term (see above).

In general, in case a contractual party fails to timely perform its payment obligation, and in the absence of specified contractual penalties, a statutory penalty equal to the key rate set by the Russian Central Bank (currently 6.75% per annum) would apply. In addition, the suffering party (creditor) will be eligible to claim damages exceeding the above statutory penalty.

Russian FOREX legislation also sets forth strict requirements for Russian parties obliging them to procure (or at least to take all reasonable efforts to procure) the repatriation of funds paid abroad to foreign entities or persons, which failed to deliver goods, services or works against such payments. The Russian Administrative Code and FOREX legislation set forth severe penalties for the failure by Russian parties to observe the foregoing requirement. The amount of a fine typically ranges from 75% to 100% of the amount paid abroad.

There is no special legislation in Russia regarding payment obligations during the current COVID-19 situation. 

The parties to a contract may agree that the key rate set by the Russian Central Bank may apply to the purchase price of goods sold on terms of commercial credit. This does not qualify as a penalty, since no breach-of-payment terms takes place.

Furthermore, unpaid but delivered goods are considered pledged to the seller by operation of law unless the payment is made, and unless the parties agreed otherwise in the contract.