‘Payment for Breach of Contract (neustoyka)’ in Russian Civil Law

Non-performance and improper performance of a contractual obligation inevitably give rise to important legal matters, the most critical of which is ‘payment for breach of contract’. Although the requirements for being subject to ‘payment for breach of contract’ usually depend on the specific terms agreed to between the parties, the legal system to which the parties belong may also play a crucial role. In this respect, the institution of ‘payment for breach of contract (neustoyka)’ in the law of the Russian Federation deserves particular attention, since it is in many ways unique, especially when compared to other major countries in the Romano-Germanic civil law family, including Korea. Given the potential increase in disputes arising from non-performance or improper performance of contracts due to the armed conflict in Ukraine, now is the time to gain insight into the relevant legal institutions in Russian law. This will not only enable a better understanding of the important aspects of Russian contract law, but also serve to provide meaningful implications for Korean law regarding ‘payment for breach of contract’. Of particular interest is the question of reducing the amount of ‘payment for breach of contract’, since this is one area that is being actively discussed in Korean jurisprudence.