MOSCOW, March 15 - RAPSI. The Moscow District Federal Commercial Court validated the recovery of $3.68 million in insurance compensation from Alfastrakhovaniye in favor of the Federal Grid Company of Unified Energy System (FGC UES).

The court upheld on March 14 the judgment passed by the Ninth Commercial Court of Appeals and dismissed Alfastrakhovaniye's appeal against it.

The grid asked the court to recognize the 2008 fire at a substation which damaged its assets as an insurable event and to recover from Alfastrakhovaniye 109.456 million rubles ($3.7 million). The Ninth Commercial Appellate Court upheld the lawsuit in November 2011 and reversed the Moscow Commercial Court's decision to recover from the insurer as little as 8.5 million rubles ($287,590).

The insurer did not recognize the grid's claims. It said during the hearings that the accident was caused by Glavsetservice UNEG, the grid company's 100-percent subsidiary, which was repairing the substation at that time.

This is not the first dispute between the companies. The Moscow Commercial Court satisfied in May the grid's lawsuit to recover 499 million rubles ($16.88million) from Alfastrakhovaniye in indemnity for the damage caused to a Moscow substation by an accident in 2008.

Later the parties entered into a settlement agreement upheld by the Ninth Commercial Court of Appeals in September. The agreement terms were not disclosed at the hearing.

The Federal Grid Company was established in 2002 as part of Russia's power engineering reforms. The company controls the country's main transmission lines.

AlfaStrakhovanie is a subsidiary of the Alfa Group financial and industrial consortium. It offers over 100 insurance products, including life and accident insurance. It runs over 390 regional branches.