In connection with the extensive amendments to the Civil Code of the Russian Federation (the “Civil Code”), the Supreme Court of the Russian Federation has prepared clarifications¹ (addressed first and
foremost to Russian courts) as to how to apply rules of liability for the breach of obligations – an issue that arises in virtually all court proceedings.

Below we examine the main provisions of Resolution No. 7, which in the current challenging economic situation may help hold bad-faith counterparties fully liable. (...)

Content:

1. Damages
2. Lost profits
3. Causation
4. Limitation of liability
5. Specific and abstract assessment of damages
6. Bad-faith conduct of negotiations
7. Astreinte (judicial penalty)
8. Penalties and interest