In its Resolution of 30.11.2004, the Federal Arbitration Court of the Moscow District revoked the Resolution of the Ninth Arbitration Court of Appeals of 06.09.2004 № 09AP-1029/04-AK and left the decision of the Arbitration Court of the City of Moscow of

The territorial administration of the Ministry of State Property of Russia, the “Federal Agency for Property in the City of Moscow” issued Order № 599 “On the conditions of privatization of the State Unitary Enterprise for material supply ‘Aviatekhsnab’”on 23.12.2003. This order affirmed the list of objects not subject to privatization within the body of the property complex, which includes all buildings and constructions belonging to the enterprise on rights of economic management. Moreover, the Order charged the Federal State Unitary Enterprise “Aviatekhsnab” to surrender objects not subject to privatization to the Federal State Unitary Enterprise “Explorer.” Consequently, the Order of the territorial administration of the Ministry of State Property “Federal Agency for Property in the City of Moscow” violated the rights of the Federal State Unitary Enterprise “Aviatekhsnab.”

On 19.03.2004, the Federal State Unitary Enterprise “Aviatekhsnab” applied to the Arbitration Court of the City of Moscow for protection of its violated rights.

In its decision of 25.06.2004 regarding case № А40-13070/04-96-76 filed by State Unitary Enterprise “Aviatekhsnab”, the court ruled that the Order of the Territorial Administration of the Ministry of State Property of Russia, the “Federal Agency for property in the City of Moscow” of 23.12.2003 № 599 “On conditions of privatization of the Federal State Unitary Enterprise “Aviatekhsnab” was contrary to the law in the part regarding the list of objects not subject to privatization within the body of the property complex of the state unitary enterprise of material and technical supply for civil aviation “Aviatekhsnab” and their surrender into the economic management of State Unitary Enterprise “Explorer” of the Ministry of Property of Russia.

The Resolution of the Ninth Arbitration Court of Appeals of 06.09.2004 № 09AP-1029/04-AK revoked the ruling of the Arbitration Court of the City of Moscow. In the part regarding the acknowledgement of the illegality of the Order of the Territorial Administration of State Property of the RF “Federal Agency for Property in the City of Moscow” of 23.12.2003 № 599 “On conditions of privatization of the Federal State Unitary Enterprise “Aviatekhsnab”, in the part affirming the list of objects not subject to privatization within the body of the property complex of the state unitary enterprise of material and technical supply for civil aviation “Aviatekhsnab” and their surrender into economic management by the State Unitary Enterprise “Explorer” of the Ministry of Property of Russia, the ruling of the court was revoked, and the demands advanced concerning the indicated part were dismissed.

Moreover, the Arbitration Court of Appeals indicated that “the law contains no demands that upon the transformation of a unitary enterprise into an Open Joint-Stock Company, the entire property complex of the unitary enterprise is subject to privatization” and also that “the law imposes no limitations on the proprietor in determining the extent of the property subject to privatization upon the transformation of Federal State Unitary Enterprises into Open Joint-Stock Companies.”

Acting on the instructions of the Federal State Unitary Enterprise “Aviatekhsnab”, the attorneys of the law firm “YUST” filed an appeal against the Resolution of the Ninth Arbitration Court of Appeals of 06.09.2004 № 09AP-1029/04-AK.

In its Resolution of 30.11.2004, the Federal Arbitration Court of the Moscow District revoked the Resolution of the Ninth Arbitration Court of Appeals of 06.09.2004 № 09AP-1029/04-AK and left the decision of the Arbitration Court of the City of Moscow of 25.06.2004 № A40-13070/04-96-76 in force.