MOSCOW, April 16 - RAPSI. The Moscow government has contested the decision to award Glavmosstroy construction company $11.7 in damages from the mayor's office.

The Moscow Commercial Court sided with the developer on March 11 in its lawsuit against Moscow authorities to terminate an investment contract on the construction of four luxury residential areas in the downtown. The court also partially satisfied the claims for damages, but reduced the initially sought amount from 351.3 million rubles ($11.9 million) to 346.6 3 million rubles ($11.7 million).

Glavmosstroy told the Russian Legal Information Agency (RAPSI/rapsinews.com) that the lawsuit centered on the August 2004 investment contract, but the project failed as the Moscow authorities did not provide sites to build homes for the residents whose houses were to be demolished.

"Nevertheless the company spent some 360 million rubles ($12.22 million) of its own funds to relocate part of the residents from rundown houses.

Founded in 1954, Glavmosstroy is the general contractor engaged in civil engineering. It is a part of Glavstroy Holding affiliated with Oleg Deripaska's Basic Element acting as the parent company.