Russian court again delays US’ Russia Partners suit vs Eurocement

Russian court again delays US’ Russia Partners suit vs Eurocement
Published: 13 November 2006

The Moscow Arbitration Court has again postponed preliminary hearings of a 3.35 billion ruble lawsuit filed by U.S.-based investment fund Russia Partners against Russia’s Eurocement Group and its management. The new date for the hearings is December 8.

The court postponed the hearing on the grounds that an unspecified third party to the case was not informed about the date and place of the hearing.

On October 13 the Moscow Arbitration Court delayed the hearing until Friday.

The investment fund claimed that Eurocement Group, which holds a 55.5% stake in Russian cement producer Eurocement, diverted Eurocement’s profit for 2004 into its own coffers.

Russia Partners holds a 44.4% combined stake in Eurocement through two of its subsidiaries, Kolden Holdings Ltd and Serpell Holdings Ltd, which filed the lawsuit.

In 2004 Eurocement’s net profit fell 68% on the year to 409.341 million rubles, while Eurocement Group posted a net profit of 4.186 billion rubles, against a loss of 342.228 million rubles in 2003, Russia Partners said.