Court found out truth in row around stadium "Saint-Petersburg". RBC, 19 June 2018

The contract between Smolny and the group of companies "Transstroy" which earlier acted as the main contractor in construction of the stadium Saint-Petersburg, has been terminated according to the law. This conclusion was made by the Petersburg arbitration. "Fontanka" informs that after considering the case the judges came to a conclusion that "Transstroy" wouldn't have finished construction of the stadium by the beginning of the World Football Championship 2018. 

Exactly such arguments were presented by the Smolny Committee on Construction as an explanation for termination of relationship with the main contractor. Advocate Aleksey Dobrynin, partner of Pen & Paper, who represents interests of the city, told the RBC that the court had decided to pass a legal judgement just before the match on the stadium "which could have not been built because of the unscrupulous contractor". "That is why the city timely and reasonably terminated the contract. Now it's time to deal with losses", - noted the interlocutor. 

At present four more Smolny lawsuits against "Transstroy" are under consideration in the arbitration tribunals of Moscow and Petersburg. The total sum claimed is ₽4.3 b. Nevertheless, experts suppose that it won't be easy for the city government to receive this money, for "Transstroy" is likely to appeal against. So, the lawsuit is going to last at least for a year.

Note

The government of Saint-Petersburg unilaterally terminated the contract with "Transstroy" in June 2016. Smolny explained that it was because of the "slow process of work", "unjustified procrastination" and "poor work quality". The Smolny Committee on Construction brought a lawsuit in the arbitration tribunal in order to recognize the contract with the contractor building  "Zenit-Arena" terminated in August 2016. "Transstroy" itself appealed against the unilateral rejection of the 2014 state contract for building the stadium in the isle of Krestovsky.