St. Petersburg Court upholds contract termination with Transstroy for Zenit Arena project
The cooperation was terminated due to repeatedly missed deadlines, authorities say.
The Arbitration Court of St. Petersburg and Leningrad Region upheld the unilateral breach of the contract by the city construction committee with Inzhtransstroy JSC (belongs to Transsroy Group) for the construction of Zenit Arena stadium on Krestovsky Island.
"To deny the claim of Inzhtransstroy and to recognize the contract termination legitimate," announced the judge at the trial.
The contract had been signed in 2013 and was worth 12 billion rubles ($206m).
Earlier, the St. Petersburg Administration had canceled the contract with general contractor Inzhtransstroy SPb (Inzhtransstroy subsidiary). The cooperation was terminated due to repeatedly missed deadlines, non-compliance with the fire safety rules and anti-terrorism regulations, as well as failure to act on the customer's remarks on work quality and misappropriation of budget funds, authorities say. In turn, Inzhtransstroy SPb claimed the issues stemmed from "the committee’s policy and actions as regards the construction; in particular, those of Igor Albin, the project supervisor and St. Petersburg Vice Governor ".
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