The Moscow Arbitration Court Friday postponed until March 22 hearings of a lawsuit filed by U.S. investment fund Russia Partners against Russia’s Eurocement Group over alleged profit stripping.
Russia Partners’ affiliates Kolden Holdings and Serpell Holdings have accused Eurocement Group of stripping profits from Russian cement producer Eurocement in 2004. Eurocement Group holds 55.6% in Eurocement, while Kolden Holdings and Serpell Holdings hold a combined 44.4% stake.
The investment fund wants Eurocement Group to pay 3.349 billion rubles in compensation to Eurocement.
Eurocement controls 13 cement plants in Russia and two plants in Ukraine. Eurocement’s annual production capacity totals 33Mt.
Russia Partners focuses on private equity investments in Russia and other countries in the Commonwealth of Independent States (CIS). U.S.-based Russia Partners is not affiliated with U.K.-registered consulting firm Russia Partners.