17.12.22

Advocates Bureau Yug assisted the major German investor in privatising a property complex that he failed to privatise for 20 years.

Advocates Bureau Yug assisted the major German investor in privatising a property complex that he failed to privatise for 20 years.

The largest German construction enterprise in the Krasnodar region was founded in the 1990s by way of privatisation and with the involvement of foreign investments.

According to the privatisation plan, the new owner got the production complex that used to be a part of the former state enterprise. However, some objects involved in the technological process and located on the enterprises territory remained in state ownership by mistake.

For more than 20 years, the client has unsuccessfully tried to redeem the property as a matter of priority. But in 2022, the territorial authority Federal Agency for State Property Management (Rosimushchestvo) refused the client again.

The court of the first instance made a decision in favour of Rosimushchestvo since the judge saw no grounds to apply the norm on the exclusive rules for privatisation without bidding, which became invalid in 2015.

We managed to convince the court of appeal that the client failed to implement the privatisation plan due to the misfeasance of the state authority. We proved that there were no regulatory and factual obstacles for the client to privatise the property. The facilities subject to privatisation remained, initially and continuously, in ownership and usage of the client. No third party can privatise them. The facilities did not change their purposes or lose their connections to the property complex owned by the client. Thus, the client retained their primary right to acquire the disputed property.

Therefore, the 15th Commercial Appeal Court decided to satisfy the clients claim.

Managing Partner Yuri Pustovit and associate Alexey Demekhin represented the clients interests.

Back