COURT OF CASSATION SUPPORTED TOAZ

During its session on September, 05, the North Caucasus District Court of Arbitration supported PJSC Togliattiazot cassation appeal against the lower echelon decision in the case of Krasnodar territory Administration versus ToAZ. The court ordered to recall the lower echelon judgments and remitted the matter for fresh examination at first instance.

Litigation in the case of Krasnodar territory Administration versus PJSC Togliattiazot and CJSC Togliattiazot Corporation on declaration of proprietary rights for unauthorized construction has been held since 2014. Krasnodar territory Arbitration Court and the court of appeal took the decision on the transfer of the ownership of some structures, erected by ToAZ as part of the construction of the complex for ammonia and urea transshipment to Krasnodar territory, despite the fact that the enterprise had all necessary permissions for the construction and investment agreements both with local and regional authorities.

Due to the decision of the North Caucasus District Court of Arbitration the infrastructure facilities will remain in PJSC Togliattiazot ownership which will permit to push the progress of work, necessary for the project completion and commissioning of the transshipment complex.

Petr Ordzhonikidze, Chairman of the PJSC Togliattiazot Board of Directors commented on the court decision. ‘We are satisfied by the decision of the court of cassation and expect that it will permit to hasten the implementation of the project on terminal construction in Taman port, which is strategic not only for ToAZ, but for the whole country as well’.

PJSC Togliattiazot transshipment complex in Taman port in Temryuk region of Krasnodar territory intends to transship 2 million tons of ammonia and 3 million tons of urea per year. The terminal will be able to accommodate vessels with the deadweight of up to 50 thousand tons. Construction is carried out as part of the Federal Target Program ‘Development of the Russian Transportation System’, the RF Government also included the project into the RF area planning scheme in the field of federal transport and into the Road Map for the development of sea ports in Azov-Black Sea basin up to 2020. Togliattiazot implements this large scale investment project on the transshipment complex construction, whose total investment volume amounts to USD 300 million, without borrowing budget funds. The complex commissioning is planned for 2020.