A European manufacturer had been working for many years with a Russian distributor on a post-payment basis with deferred terms. After the imposition of mutual sanctions and Russia’s disconnection from SWIFT, the distributor refused to pay the accumulated debt, citing force majeure. Despite the client’s strong legal position, recovery proved challenging: the debtor was located in Russia, and sanctions along with currency control barriers blocked the transfer of funds back to Europe.

The primary challenge was that traditional enforcement mechanisms through local courts were effectively unavailable in the debtor’s jurisdiction. We developed a solution based on the use of international enforcement tools, the selection of alternative jurisdictions, and the application of strategic pressure mechanisms, which enabled debt recovery despite sanctions-related constraints.

1. Confirm the enforceability of the client’s claims under sanctions and currency restrictions.
2. Identify and secure debtor’s assets located outside Russia
3. Determine the most favorable jurisdictions for recognition and enforcement of the arbitral award.
4. Initiate commercial pressure mechanisms to accelerate debt recovery.
5. Develop a risk register to prevent delays, additional costs, and potential asset freezes.

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A comprehensive approach was implemented, combining legal strategy, commercial investigation, and expert analysis.The Anahata Solutions team developed a plan based on Data Research to identify the debtor’s foreign assets and financial flows, and an Expert Opinion to build a compelling evidentiary case across multiple jurisdictions.

Anahata Solutions played a key role in strengthening the work of the client’s legal team. We gathered verified data, structured the evidence, and prepared a comparative analysis of jurisdictions. This enabled the lawyers to design the most effective enforcement scenarios and build a legal position resilient to sanctions-related constraints.

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1. Conducted an analysis of corporate and financial documentation to identify the debtor’s assets outside Russia.
2. Determined the optimal jurisdictions for enforcement by reviewing international recovery mechanisms.
3. Traced cross-border transactions and commercial relationships confirming the debtor’s solvency despite its references to force majeure.
4. Prepared an Expert Opinion on legal and financial instruments enabling the bypass of currency barriers and recovery of the debt.
5. Developed a project risk register with concrete management mechanisms.
6. Developed a commercial pressure strategy that included the freezing of circulating assets and the involvement of the debtor’s counterparties to amplify the effect..

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Data Research consolidated information from international corporate registries, financial disclosures, and transaction databases. This allowed the team to identify debtor-controlled assets and entities outside of Russia. The analysis revealed discrepancies between the debtor’s claims of impossibility and the real financial capacity to pay.