In a resolution of 19 January 2006, the Federal Arbitration Court of the Moscow Circuit upheld the ruling of the Arbitration Court of the City of Moscow of 8 August 2005 and the resolution of the Ninth Court of Appeals of 27 October 2005

The Federal State Unitary Enterprise “ISK “Rosatomstroy” conducted a closed tender for “Project development, manufacture and prime installation of steam boilers for the power station “Sibirsky khimichesky kombinat” as a replacement source.” Tenders were submitted by OJSC “Taganrogsky kotlostroitelny zavod “Krasny kotelschik” and OJSC “Energomashkorporatsiya” PK “Sibenergomash.” The tender was won by OJSC “Energomashkorporatsiya PK “Sibenergomash”, and a contract for the supply of boilers was duly executed.

OJSC “Taganrogsky kotlostroitelny zavod “Krasny kotelschik” filed a claim with the Arbitration Court of the City of Moscow, calling for the invalidation of the above-mentioned tender. Grounds for the Claimant’s demand were based on the violation of the term stated for submission of the tender, and also called for the introduction of changes to the tender documentation as established by the Federal Law “On the invitation of tenders for the supply of goods, execution of works, rendering of services for state purposes.”

In the course of the hearing of the dispute, attorneys from the law firm “YUST”, acting on behalf of the Federal State Unitary Enterprise “ISK “Rosatomstroy”, indicated that the violations that had occurred were not of a gross nature, did not cause a wrongful determination of the winner of the tender, and that declaring the disputed tender invalid would not result in the restoration of the Claimant’s rights regarding fulfillment of the contract, executed as a result of the competition.

The Arbitration Court of the City of Moscow agreed with the arguments advanced by “YUST” attorneys, and in its ruling of 8 August 2005 dismissed the claim filed by OJSC “Taganrogsky kotlostroitelny zavod “Krasny kotelschik.”

In its resolution of 27 October 2005 on the same matter, the Ninth Arbitration Court of Appeals left the ruling of the court of the first instance unchanged, and dismissed the appeals complaint filed by OJSC “Taganrogsky kotlostroitelny zavod “Krasny kotelschik.”

By its resolution of 19.01.2006, the Federal Arbitration Court of the Moscow Circuit left the above-mentioned ruling and resolution unchanged, and dismissed the cassational complaint filed by OJSC “Taganrogsky kotlostroitelny zavod “Krasny kotelschik.”