We filed an administrative lawsuit against the Regional Tariff Service in the Supreme Court of the Republic of Kalmykia. We requested the Court to recognize the authoritys decision to establish the required gross revenue and tariff as invalid. We provided reasons in the lawsuit that the client had taken bank loans to eliminate cash gaps and spent them on the companys branch in the Republic of Kalmykia. We proved that certain regulatory acts in the electric power industry provide legal grounds to accept the costs.

The Supreme Court of the Republic of Kalmykia (Decision dd. 20.12.2021) and the Judicial Board for Administrative Cases of the Third Appeal Court of General Jurisdiction (Appellate Ruling dd. 05.04.2022) refused to include loan interest in the clients tariff. Our lawyers had to file a cassation complaint.

The Fourth Cassation Court of General Jurisdiction ruled to change the previous judicial decisions. It eliminated the conclusion from their motivational parts stating that the planned costs for 2021 of 131,328,870 rubles were economically unreasonable and not proved by documents under the article "On Loan Interests (Loan Expenses)". It also dismissed adjustments to uncontrolled expenses of 563,936,270 rubles based on the actual values for the year 2019 under the Article "On Loan Interest (Loan Expenses)".

Managing Partner Yuri Pustovit, Senior associate Sergey Radchenko and Associate Zakhar Khrebtov represented the clients interests in the Fourth Cassation Court of General Jurisdiction.