Under the award of Cologne court, the premises of former Soviet trade representation will be put up to auction December 17; the generated funds will go to pay off Russia’s debt of ˆ4.9 million to the private investor, German businessman Franz Sedelmeier.
Photo: Vasily Alexandrov
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Russia’s Assets in Germany to Be Auctioned Dec 17
The court in Germany has set the date for the auction to sell premises of former Soviet trade representation in Cologne in settlement of the ˆ4.9-million debt of Russia to businessman Franz Sedelmeier. For the first time, the RF assets will be sold at the public auction to pay off the debt under award of the International Arbitration. Pursuant to German laws, Russia may prevent the asset disposal by settling the debt.
Under the award of Cologne court, the premises of former Soviet trade representation will be put up to the auction December 17; the generated funds will go to pay off the ˆ4.9-million debt of Russia to private investor, German businessman Franz Sedelmeier.
Franz Sedelmeier’s SGC International and St. Petersburg’s GUVD (Main Internal Department) set up a joint venture in 1991. GUVD contributed its residence on the Kamenny Island. In 1995, the residence went under control of the Kremlin's Management Department and Sedelmeier demanded compensation for rebuilding expenses.
The Stockholm International Arbitration upheld the businessman in 1998 and ordered to redeem to him $2.3 million. The amount has increased to ˆ4.9 million with the accrued interest taken into account.
Enforcing execution of the arbitration award on Russia isn’t easy – it is next to impossible to find Russia’s assets overseas that won’t be protected by the diplomatic immunity. But far back in 1996, Sedelmeier managed to prove in the court of Cologne that former Soviet trade representation was Russia’s property used for commercial purpose.
www.kommersant.com
All the Article in Russian as of Sep. 30, 2008
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