MOSCOW, September 28 - RAPSI, Natalia Belova. A federal commercial court has upheld the lower-court's decision to dismiss a lawsuit filed by the Specialized Department 197 construction company to recover 714.66 million rubles ($25.5 million) in damages from the Moscow government, the court told the Russian Legal Information Agency (RAPSI).

The Specialized Department 197 was established in 1972. According to its website, it has implemented over 500 projects and specializes in construction, including earthwork, assembly and cast-in-situ works.

The construction company and the Moscow government entered into an investment contract in fall 2006. Under the contract, the company was to demolish old buildings, relocate their residents, and construct new housing, social facilities and underground parking lots in Moscow.

In summer 2010, the local authorities requested the contract's termination. Compensation issues had to be resolved in court.

According to the plaintiff, the defendant failed to execute a number of contract provisions, and claimed damages and lost profits.

A representative of the construction company said the builders performed the activities they were able to perform given the circumstances and were not engaged in any other work.