On 14 May, 2009 the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation ruled to satisfy claims filed by OAO “Donskoy Tabak” (Russia) against Finrep Handels Ges.m.b.H. (Austria) to recover amounts d

In March 2008 OAO “Donskoy Tabak” filed a claim with the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation against Finrep Handels Ges.m.b.H. to recover amounts due under the loan agreement because of the failure of the said company to return the monetary funds extended by OAO “Donskoy Tabak” under the loan agreement.

In their traverse against the claims Finrep Handels Ges.m.b.H. alleged that it was a sham transaction, and argued that, as a matter of fact, the will of the parties was not aimed at extending monetary funds by the lender under the agreement to be owned by the borrower on a repayable basis, whereas the agreement was signed to pay the amounts in the purchase and sale transaction for the third person.

Despite an immediate obvious nature of a legal basis for the stated claims, the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation had to examine in detail not only the relationships of the parties under the disputed agreement, but also other quite delicate points in the relationships of the companies.

Based on the court findings, the arbitrators at the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the RF, two pros versus one con, ruled to satisfy the claims filed by OAO “Donskoy Tabak”.

Interests of OАО “Donskoy Tabak” in the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the RF were represented by Mr. Artem Kukin, Mr. Evgeny Zhilin, Mrs. Tatiana Starikova, partners and advocates of the Moscow Region Bar Association “Law Firm “YUST”.