On the issue of declaring invalid the real estate sale agreement with an “unfriendly” element (case study of the judicial proceeding involving “Bauer technology” LLC)

The article contains detailed commentary of the judicial case arising from action filed by “Bauer Technology” LLC against businessman Prudnikov R.P. (№ А41-101031/22). In this case the real estate sale contract concluded with company under control of entity connected with “unfriendly” jurisdiction bypass the specific order of conclusion and execution, which requires permission by governmental commission and settlement through type “C” accounts, was for the first time declared invalid. The author pays substantial attention to the assessment of legal implications, led by indicated judicial practice, including in respect of: the difficulties of qualification of a party to a contract as belonging to one of the types of “persons of foreign states taking unfriendly actions”; stemming from it, risks of a buyer under a real estate sale contract and its mitigation mechanisms; as well as growing importance of public control over transactions falling under counter-sanctions measures of the Russian Federation.