Activists of the Russian National Bolshevik Party (NBP) stage a rally headlined 'Kaliningrad - Russian City' on Kadashevskaya Embankment.
Photo: Sergey Mikheev
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Kaliningrad Region Hasn’t a Representative Office in Lithuania
// Its building in Vilnius is seized for the debts
Life on credit
Yesterday, the Chamber of the Court of Appeal of Lithuania rejected the appeal of the Kaliningrad region administration in connection with the seizure of the real estate and freezing of the bank accounts. The issue is the seizure of the building of the representative office of the region in Vilnius that is evaluated a $25 million. The reason of the seizure is that the administration didn’t pay back the credit it took from German Dresdner Bank AG.
As a judge of the Court of Appeal Lina Shutovene told Kommersant, the chamber decided to leave unchanged the decision of the Court of Vilnius concerning the temporary protective action as the seizure of the real estate and freezing of the accounts of the Kaliningrad Region representative office.
In February 1998, the administration of Kaliningrad region got a credit from Dresdner Bank AG at the amount of ten million dollars for five years. The money was invested in the modernizing of battery farm Baltptitseprom. In February 2003 the new administration refused to return the credit. Dresdner Bank AG sent the order to a Cyprian Duke Investment Limited that appealed to the international Court of Appeal.
In October 2004, London International Court of Appeal decided to levy the $20.2 million, including $9.6 million as penalty fees from the administration. According to the decision, the delay in payment increases the debt at 19.75 percent a year. In a year the debt will increase at some four million dollars.
That’s why the Court of Vilnius seized the realty and froze the accounts of the representative office. Duke Investment Limited is intended to levy any property the administration has abroad or on the territory of Russia. Baublys ir partneriari is the representative of the Cyprian company. One of their officials, Gediminas Baublis, declared, that “sell of the property of the foreign country in Lithuania is an unexampled case.”
The head of the representative office Sergey Overko declared yesterday that the administration is intended to lodge a complaint against the decision of the Lithuanian Court of Appeal. “We’re lodging a complaint to the Supreme Court of Lithuania where were want to controvert the justification of such a decision of the court of appeal. We can’t agree, though we have supposed it would be like that.”-he declared. According to Overko “the trial may last long and none of the sides will benefit. But we’re not about to go and leave our two buildings in Vilnius. The representative office is working. Our assistance helped to increase commodity turnover with Lithuania up to $300 million.”- he said and noted that the residence of the representative office “costs not more than $150 thousand.”
Vladimir Bogo, Vilnius
All the Article in Russian as of Feb. 04, 2005
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