Zee Beam News

May 27, 2008 - Kommersant - Russia’s government has filed a suit to a French court against Swiss Noga, seeking the compensation of material damage caused by illegal seizure of the RF assets in France, the RF Finance Ministry announced via the press release. Noga is expected to compensate for the damage caused to the Central Bank of Russia (CBR) and RIA Novosti news agency. Although the company was unable to seize the government’s assets, its actions were to the detriment of Russia’s reputation and economic interests, the ministry’s statement says without specifying the claimed amount. France froze the assets of CBR and RIA Novosti in January 2008 by demand of Noga, which alleged that those institutions were divisions of the RF government and therefore, its debtors. Russia currently owes 49 million euro to Noga. CBR and RIA Novosti contested that decision of French leadership in March, Russia promised to file a counterclaim against Noga in April, and the assets were finally released in May. Swiss Noga clinched deals for supplying goods to Russia in early 1990s. The contract was cancelled under the government’s demand and the company failed to prove the exact worth of the goods shipped to the country. The U.S. businessman Alexander Kogan bought out the government’s debt in 2006 and transferred it to the government afterwards. Russia owes nothing to Noga, he reiterated.