Confl ict Regulation of Debtor’s Transactions Invalidity in Cross-Border Insolvency

Given the lack of proper legal regulation of both cross-border insolvency in general and the invalidity of transactions in cross-border insolvency in the Russian law, the author analyzes Russian judicial practice revealing the problem of determining applicable law in challenging the debtor’s transactions in the framework of the insolvency procedure. The author concludes that the Russian judicial practice shows that determination of the law applicable to the invalidity of transactions is contingent on the existence of a bankruptcy procedure and on the grounds for recognizing the transaction as invalid. Based on the analysis of the European regulation of legal issues applicable when challenging the debtor’s transactions in cross-border insolvency, the author considers possible exceptions to the conflict of laws lex fori concursus for certain categories of third parties to be protected from unexpected interference in the legal relationship of the parties to foreign law in order to ensure the stability of the turnover and maintain legal certainty.

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