"Sibiryak" awarded land of the Krasnoyarsk Combine Factory
Rewritten Article:
The High Court of Russia has sided with construction company "Сибиряка" in a dispute over the privatization of land, which previously housed the Krasnoyarsk Combine Tractor Factory. With this decision, the vast area under contention is likely to see heavy development.
On March 18, the Court of Cassation reviewed and dismissed appeals raised by OOO "Новоостровскиий", OOO СЗ ЖК "Новоостровскиий," and bank Dom.rf against a decision by the local prosecutor. Although the details of the Higher Court's ruling are yet to be published, the construction agency itself announced the news.
In their statement, "SIBIRAK" reported that ownership of the land has been returned to their group of companies, and all previous legal orders passed by subordinate courts have been revoked. Quite fittingly, the court ruling reportedly took immediate effect.
Looking back, legal proceedings in this case have been ongoing for several years. Initially, around 660,000 square meters of land were sold to "SIBIRAK" for a symbolic sum. However, federal organization "Rosimushchestvo" (Russian Federal Property Management Agency), the rightful owner of the land, initially refused to provide acceptance for the deal. The prosecutor's office subsequently brought charges against the privatization, and the lower courts ruled in its favor. This decision was later upheld by the Third Arbitral Court and the Arbitral Court for the Eastern Siberian District.
However, it appears that the Higher Court has now overturned these earlier decisions, in favor of "SIBIRAK."
Previously, companies affiliated with "SIBIRAK" owner and CEO Vladimir Egorov planned to construct a residential area accommodating up to 30,000 residents on the site, where agricultural machinery used to be produced. A multitude of schools and daycare centers were planned for this massive population, though these facilities were conspicuously absent in the developers' plans. The prosecutor had proposed that the developer sign a peace agreement, agreeing to construct necessary social infrastructure in exchange. OOO "Новоостровскиий" and SZ ЖК "Новоостровскиий" declined this offer.
Whilst development has already begun on a limited number of building plots, a separate lawsuit has been filed to address claims that illegal enrichment has taken place in connection with these developments. According to the court case, the prosecutor demands close to half a billion rubles (580 million RUB) in federal tax revenue from the companies involved.
Time will tell how the development of this area unfolds, and whether it becomes a bustling residential district in one of the most picturesque parts of Krasnoyarsk.
In an unexpected twist, Egorov's arrest has been confirmed today by local prosecutors on a different, unrelated matter, following their decision earlier today.
- The decision by the High Court of Russia in favor of construction company "Сибиряка" could potentially lead to significant finance investments in real-estate development, as a vast area previously occupied by the Krasnoyarsk Combine Tractor Factory is now open for heavy development.
- The recent news of politician Vladimir Egorov, owner and CEO of "SIBIRAK", being arrested on unrelated charges adds a new layer to the ongoing politics surrounding the privatization of land in Krasnoyarsk.
- General-news reports have stated that a separate lawsuit has been filed to address claims of illegal enrichment in connection with the ongoing real-estate development related to the Krasnoyarsk land privatization, with the prosecutor demanding a substantial sum in federal tax revenue.
