MOSCOW, March 7 - RAPSI, Sergei Feklyunin. The Moscow Commercial Court has suspended its proceedings over the $152 million lawsuit filed by Shalva Chigirinsky's ST Development against the Moscow government.
Chigirinsky filed for the suspension as the Supreme Commercial Court is considering ST Development dispute against Satory company and the judgment will affect the amount claimed from Moscow.
The lawsuit centers upon a contract for the Rossiya hotels renovation signed in December 20, 2004, and an investment contract dated July 31, 2006.
ST Development sued the Moscow government in 2009 for 3.159 billion rubles ($113 million) in damages and later increased its claim. The defendants in the case are Moscow's Economic Policy and Development Department and Finance Department.
The case was suspended in January 2010 pending an award in ST Development's lawsuit over the effects of quashing the hotel renovation contract and to recover 4.093 billion rubles ($146.3 million) from the Moscow government.
The Moscow Commercial Court held against the lawsuit in February 2010 and the higher courts upheld the judgment.
ST Development, the project's major investor, started dismantling the Rossiya hotel in February 2006. The developer planned to build a new multi-purpose complex designed by British architect Norman Foster. However, the company had to freeze the project after Chigirinsky ran into serious financial troubles in 2008.