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Art De Lex Negotiates Settlement for Global Ports Company in FAS Dispute

Art De Lex Negotiates Settlement for Global Ports Company in FAS Dispute

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The Art De Lex law firm in Russia is reporting that the Moscow Arbitrage Court has approved a settlement the firm negotiated for Global Ports Group in a dispute with Russia's Federal Antimonopoly Service on a RUB 4 billion abuse of dominance case. 

The settlement follows the FAS's April 2017 findings that the Group's FCT Terminal (as well as a number of other Russian terminal operators) was in breach of antimonopoly laws in relation to the pricing of stevedoring services in Russian ports.

According to a Global Ports Group press release, "although the specific terms of the agreement are confidential, the Group can confirm that the terms of the settlement will not have any material impact on the Group's financial position or cash flow and will not negatively affect FCT's operating activities in any significant way. "

In April 2017 FAS also found that the Group's VSC and PLP terminals were in breach of antimonopoly laws in relation to the pricing of stevedoring services. The Group challenged the FAS findings with respect to each of FCT, VSC, and PLP and appealed against the orders in court. According to Global Ports Group, it "expects that PLP and VSC will reach settlements with FAS on similar terms in the near future. Court hearings on those arrangements are scheduled for later this month."

Global Ports Investments describes itself as "the leading operator of container terminals in the Russian market," and reports that "its terminals are located in the Baltic and Far East Basins, key regions for foreign trade cargo flows." Global Ports operates five container terminals in Russia (Petrolesport, First Container Terminal, Ust-Luga Container Terminal  and Moby Dik in the Russian Baltics, and Vostochnaya Stevedoring Company in the Russian Far East) and two container terminals in Finland (Multi-Link Terminals in Helsinki and Kotka). It also owns the inland Yanino Logistics Park and Logistika-Terminal container terminals, both located near St. Petersburg, and it has a 50% stake in Estonia's oil products terminal Vopak E.O.S. The company's revenue for the first half of 2017 was USD 162.5 million, and its adjusted EBITDA was USD 97.3 million.

Editor's Note: Shortly after this article was published Art De Lex announced that that the Moscow Arbitrage Court had indeed approved the settlement agreements involving the Vostochnaya Steveedoring Company and the Petroslesport (VSC and PLP, respectively) terminals as well, bringing the FAS's charges against the three terminals to a conclusion. The Art De Lex team working under the guidance of Partner Yaroslav Kulik, was led by Kirill Dozmarov and included lawyers Anna Mitroshkina and Elizaveta Savina.

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