Federal Arbitrazh (Commercial) Court of the Moscow District did not support the position of E. Baturina’s company in the dispute over the land formerly owned by ZAO (Closed Joint-Stock Company) “Matveevskoye”

5 February 2013

Today, in the case concerning the land plot in the west of Moscow, the property right to which was challenged by the company Elena Baturina, the Federal Arbitrazh (Commercial) Court of the Moscow District made a decision to uphold the previous decisions of the lower courts, which essentials come to a requisition of the said land plot from ZAO “TD “Setunskaya” (Closed Joint-Stock Company “Territorial Directorate “Setunskaya”), where Baturina is a shareholder.

On June 21, 2012 in regard to this case the Moscow Arbitrazh (Commercial) Court decided to satisfy the claims of the Federal Agency for State Property Management of Russia (Rosimushchestvo) against ZAO (Closed Joint-Stock Company) “TD “Setunskaya”. On October 4, 2012, this decision was upheld by the Ninth Arbitrazh (Commercial) Court of Appeal.

Today, in response to the filed cassation appeal the Federal Arbitrazh (Commercial) Court of the Moscow District refused to satisfy the appeal of ZAO “TD “Setunskaya” and ZAO “Matveevskoye“ and adopted a resolution upholding the decision of the lower court.

In 1993 the state farm “Matveevskoye“ privatized the land plot in the west of Moscow. In 2003, the firm of the former Moscow Mayor’s wife Elena Baturina purchased the land, and challenged in court the ownership of the land, but it was denied on the basis of the Decree of President Boris Yeltsin that the land intended for the construction of embassy buildings are federal property. Those land plots that were claimed by Baturina, long earlier in Soviet international agreements had been intended for the construction of buildings for representatives of China, India and Cuba. However, in 2004 the Federal Agency for State Property Management of Russia (Rosimushchestvo) withdrew the claim, and in 2008 the Moscow Government allowed to the company owned by Elena Baturina, to build in this area of 16 ha a multi-function complex, which would include a premium-class hotel, apartments and retail and entertainment complex. In 2010, the new Mayor of Moscow Sergei Sobyanin forbde the construction and Rosimushchestvo filed the claim again that these lands had been illegally transferred to the Territorial Directorate ”Setunskaya“. The trial lasted until 2012, and in June the Arbitrazh (Commercial) Court, and in October the Court of Appeal upheld the decision that this area must be passed to the federal property, and there shaould be constructed embassy buildings. That was the decision in regard to which the company of E. Baturina filed the cassation appeal to the Federal Arbitrazh (Commercial) Court of the Moscow District, which today confirmed the decision of the Arbitrazh (Commercial) Court, leaving the cassation without satisfaction.