On April 25, 2025, the Russian Federation Supreme Court passed a ruling in the action brought by Bazalt LLC against its General Director D. M. Kotov. The Supreme Court addressed the matter whether the company suffered damages from below-cost sales and whether the company could in fact have approved its General Director's actions.

Do below-cost sales mean that a company has generated a loss? Do any other circumstances need to be looked into?

Could a company have approved such below-cost transactions by the course of its conduct?

Our Dispute Resolution and Bankruptcy Practice team consisting of Kirill Ponasyuk, Partner, and Inna Ivannikova, Senior Associate, dissects the stance taken by the the Supreme Court and explains why its findings are of crucial importance to the judicial practice?