Reduction of the priority of satisfying the claims of the secured creditor in the practice of the supreme court of the Russian Federation

Abstract

The author of this article is analyzing the position of Supreme Court of the Russian Federation from 2020 and 2021, according to which, in case of insolvency of the pledgor after the pledged item is sold, first of all, VAT claims related the pledged item must be paid. And only after such payment claims of other creditors can be satisfied. The author comes to the conclusion that this new position contradicts the current legislation, ignores previous judicial practice and unreasonably infringes on creditors, further lowering them in the priority of satisfying claims.