Commercial Eviction in Russia (Commercial Court)

The process of driving a commercial company out of a non-residential (commercial) premises 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. 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 claim/warning.

The landlord must send a registered letter with an inventory of enclosures to the legal address of the debtor (LLC), giving them a reasonable timeframe (e.g., 10–30 days) to cure the violations (pay off the debt). If a lawsuit is filed without proof of sending such a claim, the Arbitration Court will return the lawsuit without consideration.

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 "take the equipment hostage" (Pledge) until the LLC pays its million-ruble rent debts, and if they refuse to pay—they sell the confiscated office chairs at auction. For this harsh action to be recognized as absolutely legal by the Arbitration Court, 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 much faster and more indisputable lawsuit "On freeing the premises and removing obstacles" (actio negatoria).

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