MOSCOW, April 23 - RAPSI, Alyona Yegorova. The Ninth Commercial Court of Appeals will hear on May 21 the Moscow government's appeal against the $11.7 million awarded to Glavmosstroy construction company, controlled by billionaire Oleg Deripaska.
On March 11 the Moscow Commercial Court upheld the developer's lawsuit against the Moscow authorities, who sought to terminate an investment contract on the construction of four luxury residential areas in central Moscow. The court largely supported the developer's claims, ruling that the plaintiff be awarded 346.6 3 million rubles ($11.7 million), although not the full 351.3 million ($11.9 million) originally sought.
Glavmosstroy told the Russian Legal Information Agency (RAPSI/rapsinews.com) that the lawsuit is focused on the August 2004 investment contract, but the project collapsed because the Moscow authorities failed to provide sites for the rehoming of those residents whose houses were to be demolished.
Nevertheless, the company spent some 360 million rubles ($12.22 million) of its own funds to relocate some of the residents from poorly maintained buildings.
Glavmosstroy was founded in 1954. It has been engaged in civil engineering and is associated with Glavstroy Holding, whose parent company is Deripaska's Basic Element.