Supreme Court overturns IKEA’s 507-million penalty in favor of witness in Browder case

Supreme Court overturns IKEA’s 507-million penalty in favor of witness in Browder case
Konstantin Ponomarev

Late in August last year, the Krasninsky Court of the Smolensk region granted Konstantin Ponomarev over 507 million rubles to be paid by IKEA.

The Russia's Supreme Court overturned the IKEA penalty of over 507 million rubles that it had to pay to Konstantin Ponomarev, a businessman who was a witness in the case of William Browder, Hermitage Fund CEO. "The judicial board decided to cancel the verdict reached by the Smolensk Krasninsky Court and to pass the case for a new trial in the Khimki court of Moscow region", RIA Novosti quoted the judge.

The furniture manufacturer was represented by seven lawyers who brought three suitcases full of papers into the courtroom. Human rights activists tried to prove that the arbitration court should try the case rather than the district court. Konstantin Ponomarev asked to leave the decision as is.

Late in August last year, the Krasninsky Court of the Smolensk region granted the businessman over 507 million rubles to be paid by IKEA. In late December, the same court stayed the proceedings on Ponomarev’s claim against IKEA amounting to 9.3 billion rubles.

We should remind that Konstantin Ponomarev has been pursuing IKEA in court for years over the company’s renting generators for its St. Petersburg’s stores. In early December reports came that 9.3 billion rubles owned by IKEA Russia had been arrested. The arrest was an interim measure on Konstantin Ponomarev’s suit. The businessman was trying to get compensation for the use of his diesel generators by IKEA between 2009 and 2010. The total amount of Mr. Ponomarev’s claims reached 120 billion rubles.

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