Sergei Bakeshin has commented for the Kommersant on the loan from a former Russian minister on the construction of a port terminal

Artem Begun, a one of the participants of the Universally Transshipment Complex Primorsky LLC, pledged his share to the former Minister of Information Technology and Communications of the Russian Federation Leonid Reiman as security for a loan received by the company for one year with the possibility of renewal. The business partners decided to turn to an individual rather than borrow money from a bank because at the start of the project the company may have had difficulties in obtaining a bank loan.

The agreement on the construction of the Universally Transshipment Complex Primorsky LLC deep-sea port terminal was signed between the government of the Leningrad Region and the company in winter 2019. The terminal is being built on the territory of the Vyborgsky District.

Sergei Bakeshin, Head of Dispute Resolution Practice at Maxima Legal, shared his views on the legal prospects of the deal on request of the Kommersant. “Unless the contract provides otherwise, Mr Reiman will exercise Artem Begun’s rights in the company until the pledge is terminated. If the Universally Transshipment Complex Primorsky LLC does not repay the loan, Leonid Reiman will be able to sell the mortgaged stake (at public auction; directly at market price) or keep it. Whether Mr Reiman, or, for example, a winner at the public auction, will become a new member of the Universally Transshipment Complex Primorsky LLC, depends on the provisions of its charter and the decisions of its members,” said the expert.

To read the full article (in Russian), please see the Kommersant website >>>