Рейтинг@Mail.ru
RusEng

News

Cypriot firm appeals ruling in dispute with Crimean authorities

12:57 05/12/2016

MOSCOW, December 5 (RAPSI) – Cypriot company DRGN Ltd has filed an appeal against the dismissal of a ruling ordering Crimea’s Finance Ministry to pay 46 million rubles (about $707,000) to the company, RAPSI learned in the Moscow Commercial Court on Monday.

On September 20, the Ninth Commercial Court of Appeals overturned the ruling in question and granted an appeal filed by the Crimean authorities.

Crimea sold the bonds in 2011 to finance a solid municipal waste treatment project in Simferopol and the Simferopol Region. The plaintiff borrowed over 25,000 bonds in January 2013.

In April 2015, DRGN Ltd turned to courts demanding that Russia’s Finance Ministry pay the debt on a local domestic bond loan of 1.142 million Euros and interest for using the funds as accrued by the date of the court ruling. The republic’s State Council, the Council of Ministers and the Finance Ministry of Crimea were named as co-defendants in the case.

The Moscow Commercial Court in July granted in part a lawsuit filed by DRGN Ltd against the Crimean authorities. The court ruled that “the proper defendant in this case is the Republic of Crimea represented by its Finance Ministry;” that’s why the court dismissed claims against other defendants.

Moreover, the court held that the sum of recovery should be converted into rubles but not into Euros as the plaintiff had asked because the case was considered under Russian law.

The Crimean authorities appealed the ruling.

Crimean leader Sergei Aksyonov has announced earlier that the Crimean authorities had appealed to the Federal Security Service (FSB) to investigate the 2011 bond sale and the involved companies.

Aksyonov claimed to know who provided the funds and why. He said that Nikolai Skorik, Crimea’s Finance Minister from 2010 to 2013, transferred the money to banks in Odessa that were affiliated with his friends, and where the interest on the money accrued.

Aksyonov added that a decision in the case would be made after the investigation is complete, but Crimea is not responsible for the debt because the money has not returned to the republic.

Share thisE-mail this articlesubmit newsAdd to blogrss feed
Add to blog
To link to this material, copy the code to your blog.
Publishing code:
Preview:

Cypriot firm appeals ruling in dispute with Crimean authorities

12:57 05/12/2016 Cypriot company DRGN Ltd has filed an appeal against the dismissal of a ruling ordering Crimea’s Finance Ministry to pay 46 million rubles (about $707,000) to the company.
Forward news story

All fields are mandatory!

Submit news

All fields are mandatory!

Share this

Top news