MOSCOW, August 16 (RAPSI) - Russia's Ninth Commercial Court of Appeals has upheld the dismissal of a lawsuit filed by Novosibirsk company Algeba seeking 380 million rubles ($12.1 million) in compensation from the Bank of Cyprus based on allegations of unjust enrichment, RAPSI learnt in the courtroom.

The Moscow Commercial Court had dismissed the lawsuit in May for lack of jurisdiction.

The plaintiff, which is believed to be a subsidiary of RosEuroDevelopment, one of the leaders in the Russian commercial property market, justified the decision to file its lawsuit with a Moscow court by stating that the Bank of Cyprus has its offices in Russia. However, these offices were not involved in the dispute in any way, the defense argued.

A representative of Colofon Investment Limited, which was involved as a third party to the proceedings, earlier said that the plaintiff had erroneously transferred the money into its Bank of Cyprus account. Colofon ordered the bank to transfer the money back, but this was not done.

The money was transferred to the account of the third party which was opened in Cyprus. A correspondent account opened in Russian UniCredit Bank was used for transferring the money.

In March, Cyprus negotiated financial assistance from the EU and IMF on condition that it would restructure its banking system. Two of the country's largest banks, Bank of Cyprus and Cyprus Popular Bank, froze their client accounts. Later that month, Cyprus announced the start of its banks' restructuring.