Scuffles over control of Finnish-owned container terminal near St. Petersburg - issue to go before court

Foreign Minister Kanerva promises action

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A dispute between the Finnish Container Finance company and the Russian real estate authority Rosstroi has escalated to a physical confrontation.
      The Finnish company is accusing Rosstroi of illegally taking over property that it has leased for a container terminal in Kronstadt, off St. Petersburg.
      On Wednesday, a scuffle occurred at the container terminal, as members of a security company working for Rosstroi forcibly removed employees of Container Finance from the property that had been leased to the Finnish company. The employees had tried to prevent Rosstroi earthmoving equipment from tearing down a concrete fence around the terminal.
      The fence was first torn down already on Tuesday, but Container Finance put it up again during the night. In the morning, the bulldozers were ready to repeat the action, but company representatives delayed the demolition by several hours by setting themselves up as human shields between the equipment and the fence.
     
The Russian news agency Fontanka quoted Container Finance chairman Kimmo Nordström as saying that he plans criminal proceedings against the officials over the destruction of the company's property and injuring its employees.
      Rosstroi wants to take control of the property, which the city of St. Petersburg had previously leased to Container Finance for 49 years. Rosstroi says that it needs the land for the construction of a protective flood barrier being built across the eastern end of the Gulf of Finland. Container Finance has brought the matter to court.
     
The Finnish company says that it had been ordered to relinquish the property to make way for operations by the controversial Russian businessman Vladimir Barsukov. Container Finance notes that Barsukov has close relations with Rosstroi deputy director Vladimir Kogan, who was one of the most influential businessmen in St. Petersburg before becoming a civil servant.
      Kimmo Nordström says that Finnish political leaders have been constantly kept in the know on the situation. Information has also been reportedly relayed to the European Commission, and to the European Bank of Reconstruction and Development, which is helping finance the construction of the flood barrier.
     
Finnish Foreign Minister Ilkka Kanerva (Nat. Coalition Party) promised to take up the issue with Russia.
      "It is beyond comprehension that an entrepreneur operating under legal contracts can be removed through these kinds of actions", he said to Helsingin Sanomat on Wednesday.


Previously in HS International Edition:
  St. Petersburg calls off extension of Finnish cargo port (2.5.2007)
  Finnish company accuses Russian officials of hostile takeover attempt (13.10.2006)

Helsingin Sanomat