“Baltic cannery” LLC excluded from the list of Kaliningrad SEZ residents

Ministry of Industry of the regional government has filed an appeal to the 13th Court of Arbitration of St. Petersburg concerning the verdict of the Court of Arbitration of the Kaliningrad region. In February this year, Kaliningrad court considered the statement of claim of the regional Ministry of Industry to "Baltic cannery" to exclude the latter from the register of residents of the special economic zone in the Kaliningrad region. Back then the court found the arguments of the Ministry of Industry erroneous.

During the appeal it was established that in June 2009 ZAO "Glavprodukt" and "Baltic cannery" signed a contract for the supply of equipment in the amount of 69.75 million rubles. Under the contract the SEZ resident was to receive equipment before the end of September last year. The relevant payments were made. However, the equipment has not been delivered, the parties have twice extended the term of delivery, initially until the end of May 2010, and then until the end of December; changes to the list of equipment have been made. The St. Petersburg court considered that such costs can not be deemed investments in fixed assets according to the law "On Special Economic Zone in the Kaliningrad Region". Excluding the contract with "Glavprodukt" investment of "Baltic cannery" in fixed assets during a three years period amounted to only 83.02 million rubles., which is much less than the required threshold of 150 million rubles.

The 13th Court of Arbitration of St. Petersburg excluded LLC "Baltic Cannery" from the list of residents of the special economic zone. The company has two months to appeal the decision in the Federal Arbitration Court of the Northwest.
Note: according to the register of SEZ residents, the total stated investment by company "Baltic Cannery" in the creation of canned fish production should reach 179 million rubles.

Prepared by: Kaliningrad Regional Economic Development Agency based on materials of rugrad.eu