MOSCOW, August 27 - RAPSI. The Inteco development company has appealed a $3 million award for damages after the Moscow government failed to perform a development contract, the Moscow Commercial Court told the Russian Legal Information Agency (RAPSI/rapsinews.com) on Monday.
The court partially satisfied the lawsuit in July, as the company initially sought 161.113 million rubles ($5 million).
Inteco Development Company has appealed the Moscow Commercial Court's decision that it should be granted a $3 million damages award for the Moscow government's failure to uphold a development contract, the court's spokesperson told the Russian Legal Information Agency (RAPSI/rapsinews.com) Monday. In its July decision, the court partially satisfied Intecos initial claim for 161.113 million rubles ($5 million).
The Moscow Department for Economic Policy and Development was a co-defendant in the case. Initially, courts in two instances satisfied Inteco's claims, but the appeals court remanded the dispute for reconsideration to the Moscow Commercial Court.
During a tender in September 2004, Inteco was granted the right to build housing on two plots. The company planned to build a residential neighborhood with an area of 1 million square meters. However, it was forced to terminate the contract in 2009, as Moscow did not fulfill its obligations to eliminate third party rights to the location, Inteco said.
Earlier, the court involved Moskapstroy and TUKS-2 as third parties in the case.
Inteco is a multi-profile company and one of Russia's top development firms.
In autumn 2011, businessman Mikhail Shiskhanov and Sberbank Investments acquired Inteco from Yelena Baturina, Russia's richest woman and the wife of former Moscow Mayor Yuri Luzhkov.
Shishkhanov owned 95 percent of shares in Inteco and its subsidiaries. Sberbank Investments acquired five percent. Shishkhanov has a 97.079 percent stake in Binbank's charter capital. He is also its president. Binbank is a top-30 Russian bank. According to Forbes, he is one of the country's 200 richest people. Sberbank Investitsii is a 100 percent Sberbank subsidiary. It was established in 2010 to manage investment assets.