Russian industry pleads for moratorium on refunds
The Russian live industry is pleading for a moratorium on ticket refunds, as concerts and festivals are cancelled en masse.
Green Day, Imagine Dragons, Louis Tomlinson, Yungblud, Franz Ferdinand, Iggy Pop, The Killers, Nick Cave & The Bad Seeds and Bring Me the Horizon are among the artists that have pulled out of performances due to Russia’s invasion of Ukraine.
The Association of Concert, Theater and Ticketing Organisations (KTiBO), which represents more than 20 of the biggest players in Russia, is proposing a moratorium on ticket refunds to prevent “the collapse of the industry”.
The association wants refunds to be frozen for events scheduled from 9th February 2022 to 3rd September 2023, provided they are/were cancelled or postponed before 6th January 2023.
“Due to circumstances beyond the control of the Russian organisers, such companies fell under the consequences of restrictive economic measures (sanctions) imposed by foreign states against the Russian Federation, including against banks, and do not have the opportunity to receive a refund of advances paid under transactions on time, established by the respective contracts,” it wrote in a letter to the chairman of the Central Bank of the Russian Federation Nabiullina E.S. and the head of the Federal Tax Service of the Russian Federation Egorov D.V.
Semyon Galperin, producer, art director and talent buyer for live music venue Tele-Club in Yekaterinburg previously pointed out that the issue of refunds is further complicated by the current sanctions on Russia.
“We will have to refund ticket buyers, but some of the money is already in agencies’ bank accounts, and they won’t be able to send that back – as far as I understand – because most Russian banks will be under severe sanctions.
“Some of the money is already in agencies’ bank accounts, and they won’t be able to send that back”
“So the international part of the business will suffer terrible losses, which will probably make a lot of leading Russian companies either bankrupt or severely in debt…
“There is also this strange question about how we can find some options to rebate ticket fees to customers because of the blocked financial system.”
The issue is being felt by individual promoters across the country including Moscow-based concert agency Pop Farm, which says that at one point “tens of thousands of people” contacted them for ticket refunds.
The promoter has cancelled all of its upcoming live music events including concerts with Foals, Twenty-One Pilots, Pixies, Michael Kiwanuka and Alt-J, as well as its June festival Pain.
“We physically don’t have time to process all the return requests,” reads a post on Pop Farm’s Facebook page. “We need a few days off to figure out how to proceed, so please be patient – returns will take longer than before…”
“We don’t know what will happen to the concerts next,” reads the post. “We don’t know (and no one knows) what will happen next.”
Elsewhere, Moscow-based festival Park Live is also asking fans to be patient during the refund process, as the event continues to shed international acts.
Placebo, My Chemical Romance, Slipknot, Biffy Clyro and Iggy Pop are among the artists that have disappeared from the line-up.
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