Sergei Bakeshin has evaluated for RBC the chances of challenging sales of land

A well-known St Petersburg businessman and the owner of the First Furniture Factory, Alexander Shestakov, through court is challenging the results of the auction for the sale of land on Kamenny Island. According to the businessman, when a single application had been received during the bidding, the time for submitting further bids should have been extended.

“The rules for the sale of state or municipal property through a public auction are approved by the Government of the Russian Federation. The government stablished the short interval – 10 minutes to submit proposals on the price of property at each step. In the event of the sale of insolvent property, there is a practice of contesting tenders at such short intervals, but in this case tendering was conducted outside insolvency proceedings”, explained Sergei Bakeshin, Head of Maxima Legal Dispute Resolution and Insolvency Practice, to RBC.

Sergei noted that in order to challenge the bidding, Mr Shestakov would have to prove that he encountered technological or organisational obstacles to participate in the bidding. At the same time, according to Sergei, perhaps the entrepreneur has another goal – to delay the process and force the buyer to negotiate.

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