By 2026, the initial consequences of a prolonged economic slowdown began to emerge. Amidst deteriorating external economic conditions, tax hikes, and declining profitability, businesses are either exiting markets en masse or undergoing restructuring to optimize operations. In the first half of the year, Fedresurs recorded an increase in both new preliminary bankruptcy proceedings (supervision stage) and full-scale bankruptcy liquidation proceedings. A corporate crisis erupted in St. Petersburg during the second quarter, with the number of legal entity bankruptcies rising by 52% compared to the start of the year.
How is the economic situation affecting the legal services market, and should St. Petersburg brace for an “autumn wave of bankruptcies”? Elena Lebets, Senior Associate in the Dispute Resolution practice at Nordic Star, explores these questions in an article for RBC St. Petersburg.
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