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Tamir Sapir Wins over $28 Million in Unprecedented Court Judgment from Russian Federation
New York, NY - New York businessman and real estate entrepreneur, Tamir Sapir, recently won an unprecedented judgment in excess of $28 million from Russia’s highest judicial court after a long and arduous legal battle.
"This is a welcome decision that we are proud of, and testimony to our persistence and outstanding legal team. It also points to a positive direction for the future of the business community in Russia," said Tamir Sapir, Chairman of The Sapir Organization.
In 1995, the government of the Russian Federation issued a decree to build a complex for production of polypropylene articles on the Moscow Oil Refinery’s (MOR) site. In order to obtain funds for the construction of the complex, MOR was granted permission to export oil products. Mr. Sapir’s company, Joy-Lud Distributor’s International Inc, was to manage the financing of the project by selling oil products abroad.
In 1997, the Central Fuel Company gained a controlling interest in MOR. Several MOR shareholders filed suit to deem the contract between Joy-Lud and MOR as void. Moscow courts, however, held the contract valid.
Joy-Lud brought the case before the International Arbitration Tribunal in Stockholm and on June 14, 2005, the Tribunal ordered MOR to pay Joy-Lud $28 million in penalties, plus approximately 10% annual interest. The Tribunal’s order was overturned by Moscow’s lower courts, but was ultimately upheld by the Supreme Arbitrazh Court, Russia’s highest court.
"The decision of the Supreme Arbitrazh Court confirmed the enforceability of the award of the International Arbitration Tribunal in Stockholm. The Joy-Lud precedent is a very positive development in support of the recognition of foreign arbitration awards in Russia, hopefully, welcoming more foreign investors coming into the country," said Katerina Haslam-Jones, a London lawyer representing Mr. Sapir.