RAO UES to prevent bankruptcy of Kamchatka branch
The Russian energy giant RAO UES is going to try to prevent the bankruptcy of Kamchatskenergo, its branch in the Kamchatka region of Russia, the RAO UES information department reported to RBC. The source explained that Woodbridge Trading Ltd. (Britain) had purchased debt obligations of Kamchatskenergo for a total of $85.9m for oil supplied in 1996-1998. The British company insists on the repayment of the debt with interests for a total of more than $108.2m.
On May 17, 2002, the Kamchatka regional court supported the decision of the London International Arbitration Court. It ruled in favor of Woodbridge Trading Ltd. and obliged the local energy company to repay the debt.
A source in RAO UES noted that the decision of the Kamchatka court contradicted the basic principles of Russian legislation. The source stressed that demands of Woodbridge Trading Ltd. threatened to lead to the bankruptcy of Kamchatskenergo.