BUYING PROPERTY FROM BANCRUPCY AUCTIONS IN RUSSIA

BANCRUPCY AUCTIONS IN RUSSIA 

How it works?

When Company is going bancrupt in Russia its property is being sold on auction. Auctions details are being published in "Kommersant" newspaper on weekly basis every Saturday. Goods which are being sold on auctions include all type of property, equipment, machinery, cars, etc.  We are mainly buying on third stage of auction known as a public offer. Difference from first two auction sessions is that Price during public offer (3rd auction) is going down over a period of time before asset is being bought or minimum price is reached. 

Bancrupcy auctions are held on web-based electronic trade portals. Now it is more than 150 different electronic platforms where bancrupcy auctions are held, but principles of operation are the same for all of them. Buyer should register in advance and get authorisation by providing necessary legal documents. Also a prepayment to specified account is being made before your bid is being submitted. After changes in legislation on bancrupcy auctions in 2014 winner is defined as a Company which offered maximum price during corresponding active period of auction provided it has all necessary documentation in place.

Are foreign Companies able to buy from bancrupcy auctions in Russia?

Yes, foreign Companies are able to buy from bancrupcy auctions but all required documents should be translated and verified into Russian. Also some type of land is only available for rent to foreigfn companies (for example land near state border, farm land, sea ports land, etc). Taxation for foreign Companies differs from taxation to Russian Companies as well.

What are main benefits of buying from bancrupcy auctions in Russia?

Main benefit of buying from bancrupcy auctions is that you can buy property, production facilities, warehouses and other assets in Russia with considerable disount from market price. Usually it is 20-30% discount, but in some auctions it reaches 70% discount. 

What are main concerns when buying from bancrupcy auctions in Russia?

Main concern is that you are buying from bancrupt company. It means you need to check assets very carefully, because it is really hard to get your money back in case you bought something and did not like it. In fact money goes not to bancrupt company but to its creditors who are not likely to give money back after they get it.

What does Saint-Petersburg Business Gate offer our Customers?

We offer agent services for buying from bancrupcy auctions in Russia including monitoring of required property or other assets, requesting documents for assets being considered, preparation of documents for auction, handling auction procedure on electronic platform.