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Railroad Bankrupt has got its accounts arrested

Vladimir Vasiliev

Vladimir Vasiliev the owner of one of the largest contractors of "Russian Railways" — LLC "Corporation R Industry" — has been managing money that he obtained from the railway monopolist in a strange way. Because of that he is not able to fulfill the basic obligations to the contractors. This the only conclusion one can make judging by the materials of the arbitration case; the bank accounts of "P-Industry" have been arrested due to this case.

No wonder, there are serious concerns about safety of railways renovated or constructed by the company.


It is never better late than never

The Arbitration Court of St. Petersburg and Leningrad region has arrested the bank accounts of the "Corporation R Industry" on a seemingly ridiculous reason. The company failed to pay to the contractor "RosTransStroy" on time. Perhaps this can be attributed to the ordinary sloppiness, if not the fact: "Russian Railways" did pay to "R-Industry 'money on contracts on time.

Hence the awkward question follows: how did the company owner, Vladimir Vasiliev manage that money? Apparently, that was made not in the interest of safety of railway transportation.

As soon as further delay would have caused a scandal, "Corporation R Industry" did give out thу money which had been obtained from the "Russian Railways" and eventually did pay to the contractor. September 5, 2012 "RosTransStroy" received almost 114 million rubles from "R Industry" for the contract dated from July 2011.

But the saying "better late than never" played a cruel joke in this case .

"RosTransStroy" did not pretend everything was just fine. According to the rules of the market economy, they required the "Corporation R Industry" to pay for the use of their money, including compensation for late payment provided in the contract, and interest on the loan to Sberbank. "RosTransStroy" had to take a loan to fulfill their obligations under the railway repair works. As opposed to the "Corporation P-Industry", the contractor showed understanding of how serious the entrusted work is - railroad is the source of increased danger.

The total amount of claims exceeded 98 million rubles. It was predictable that Mr. Vasiliev did not want to pay it — accordingly, the claim to arbitration followed, the court ruled to arrest the bank accounts of the company "R Industry" as security claims.


Worse is the better

For the most part, nothing special has happened. Moreover, anyone would say that the "Corporation R Industry" should learn to perform its obligations. Especially, when working on such a strategically important and dangerous object as the railway.

But there is a thing.

"Corporation R Industry" has won a lot of contracts related to the construction and repair of railways through the friendship of its owner Vladimir Vasiliev with the President of "Russian Railways" - Vladimir Yakunin. The sum amounts to billions of rubles, and most of works cannot be executed.

According to our knowledge, "P-Industry" does not build anything by itself. They prefer to get the money, then to hire subcontractors for the some little money (this happened with "RosTransStroy", which turned out to be a match for Mr. Vasiliev).

The arrest of the bank accounts of the company means it can not pay off the other contractors from other sites - which railroads are also under renovation or construction.

Moreover, today the "Corporation R Industry" is objectively insolvent. The other company owned by Vladimir Vasiliev - "Company Rus" is getting bankrupt; and Marina Antipinsky - judge of the Arbitration Court of St. Petersburg and Leningrad region – decided to seize the whole business, including the "Corporation R Industry" (Vladimir Vasiliev is brought to vicarious liability for gross violations of the law on bankruptcy - we wrote about it in detail: http://oglaskaspb.com/eng/auto/a64/).

But all these circumstances (by the way, all of them are well known to the leadership of the "RZD") for some reason did not stop the "Corporation R Industry" from winning railway tenders.

It looks like "Russian Railways" is guided by a paradox principle in regards of the "Corporation R Industry": Worse is the better. It is unthinkable how it can affect the safety of the railways passengers.


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