Commercial Eviction in Russia (Commercial Court)

The process of driving a commercial company out of a non-residential (commercial) premises in Russia is governed by the Civil Code of the Russian Federation (Part 2), which became effective on 1 March 1996. This process is fundamentally different from evicting an individual from an apartment. Firstly, such B2B disputes are considered exclusively in special commercial Arbitration Courts of the Russian Federation (Arbitrazhny Sud) under Art. 27 of the Arbitration Procedure Code (APC RF). Secondly, commercial landlords are endowed with significantly harsher leverage tools.

1. Pre-Trial Notification (Mandatory Stage)

According to Clause 3, Part 1 of Article 619 CC RF, if a store or cafe tenant stops paying rent (or makes illegal structural alterations that ruin a load-bearing wall of a business center), the landlord is obligated to first send the business an official written pre-trial warning to fulfill their obligations within a reasonable time.

Furthermore, a mandatory 30-day pre-trial claim period applies to all monetary and termination disputes in Arbitration Courts unless the contract establishes a different term (Art. 4 APC RF; Art. 452 CC RF). The landlord must send a registered letter with an inventory of enclosures to the legal address of the debtor (LLC). If a lawsuit is filed without proof of sending such a claim and waiting the required period, the Arbitration Court will return the claim (Art. 129 APC RF) or leave it without consideration (Art. 148 APC RF).

2. Withholding Goods and Blocking Access (Self-Help)

This is the most aggressive and unique practice of corporate conflict in the Russian market. The law (Art. 359 CC RF "Right of Retention") states that a creditor has the right to withhold a debtor's item in their possession until the debtor fulfills their obligation to pay for it.

If a commercial tenant "runs away" or accumulates massive debt: Landlords (large warehouses or shopping mall owners) have a widespread habit of hanging their own "padlocks" or blocking smart cards (access control systems) for tenant employees, completely prohibiting the removal of commercial equipment (coffee machines, industrial tools, clothing).

Owners legally exercise the Right of Retention, which is legally distinct from a Pledge (Art. 334 CC RF). For this to be recognized as legal, the property must have come into the landlord's possession legally (e.g., property left in the premises after the lease was terminated and the landlord regained control). Additionally, the lease contract MUST explicitly include a clause directly permitting the landlord's unilateral refusal to perform the contract (Art. 450.1 CC RF) and establishing the right to block access / retain property upon a delay exceeding X days (e.g., 15 days).

3. Unilateral Withdrawal from Contract (Out-of-Court Dispute)

The greatest protection for a corporate landlord in Russia is the clause on unilateral out-of-court withdrawal from the execution of the contract.

If the lease agreement for a store does not explicitly mention the possibility of evicting the store out-of-court upon the appearance of debts, the landlord will have to sue for years (sometimes up to 1–1.5 years) in the Arbitration Court through three instances, while the tenant sits in the premises paying not a single ruble, abusing procedural delays.

However, if the contract includes a "Clause on unilateral out-of-court termination (withdrawal)" (Art. 450.1 CC RF), the landlord does the following:

• Writes a letter: "We notify you of unilateral termination from the 1st day of next month due to debts."
• According to the law, starting on the 1st, the contract is officially annulled without any judge.
• The shopping center disconnects the store's electricity, water, and parking, and directs security to block delivery trucks.
• If the tenant does not move out, the owner applies to the Arbitration Court with a lawsuit for the "Return of Leased Property" under Art. 622 CC RF. Note that "negatory actions" (Art. 304 CC RF) cannot be used to recover property that was originally transferred under a contract (Resolution of the Plenum of the Supreme Court/Supreme Arbitration Court No. 10/22, para 34).

Return to the Commercial Lease Overview in RussiaPreview unavailable.