Finnish company accuses Russian officials of hostile takeover attempt
Land leased by Containerships moved to Russian construction authority
|
|
|
The Finnish-Icelandic port operator Containerships has accused the Russian state construction authority Rosstroi of a hostile attempt to take over land leased by the company for the expansion of its terminal in Kronstadt outside St. Petersburg.
In the view Containerships, the case is a sign of a sharp deterioration of the investment climate in Russia.
The Containerships terminal has operated on the island of Kronstadt since 2002. The harbour handles about 100,000 containers a year, and the company wants to increase the annual volume to as much as a million containers.
The expansion plans have run up against Rosstroi, which is building a dam across the narrow inlet at the eastern end of the Gulf of Finland.
Rosstroi says that it needs the land leased by Containerships as a storage area for its construction material.
Consequently, the City of St. Petersburg does not plan to renew the lease agreement, which ends at the end of this month, and says it will give Rosstroi the right of possession over it.
"Rosstroi does not need the right of possession. We have offered them the use of the land, but have been given a negative response", says Kimmo Nordström, CEO of Containerships.
Previously St. Petersburg decided not to renew the lease of another property leased by Containerships. The land was to have been used for a terminal for the car giant Nissan.
The city has proposed an alternate property for the Nissan terminal, but has set as its condition that Containerships agree to hand over the other parcel in dispute to Rosstroi.
The Kronstadt terminal has been seen as an example of a successful Finnish investment in Russia. Containerships has invested EUR 45 million in the harbour, of which nearly four million is tied to the property, whose lease is expiring.
"This is a model example of how a body of the Federation misuses its power. There has to be some kind of an agenda behind Rosstroi’s attitude, which could be linked with the bid for tenders for a 60-hectare property next door. The question is, who will get the most lucrative position for port activities near the future ring road", Nordström ponders.
"If we give in, our terminal will have been taken over in two or three years. However, we hope that the administration of St. Petersburg and Rosstroi will see the light, and that we will reach agreement.
Vladimir Kogan, deputy director of Rosstroi, is a very influential person in St. Petersburg.
He previously headed a bank in St. Petersburg. In April, Forbes magazine estimated his assets at EUR 430 million.
The deputy chairman of the Property Committee of St. Petersburg, Aleksei Chichkanov says that Containerships is unnecessarily worried that the area will be taken over by Rosstroi.
"We are giving the right of possession to Rosstroi temporarily, until March 2009 at the most. After that we will be committed to leasing the property back to Containerships within a year."
Nordström feels that keeping the right of possession with Containerships would be the only adequate legal guarantee for the investments.
Rosstroi would not comment on the matter on Wednesday.
Helsingin Sanomat
|
| 13.10.2006 - TODAY |
 Finnish company accuses Russian officials of hostile takeover attempt
|
|
