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Strabag threatened with loss of Russian licence

By Lisa Chapman

Austrian construction firm Strabag SE has been threatened with the loss of its Russian planning licence, Russian news agency Interfax reported today (Weds).

It said the Moscow construction authority had recommended Strabag be stripped of its licence and put on a list of unreliable suppliers, which would effectively exclude it from large projects.

Strabag, however, said the Russian cartel authority had already rejected the construction authority�s recommendation.

Strabag�s problems in Russia began last September when the roof of a garage under construction by its sub-contractor Arkona collapsed, killing one worker and injuring three others.

The Moscow construction authority said Strabag as general contractor was to blame, but the firm claimed it was only partly responsible. Alexander Ortgenberg, Strabag�s general director in Russia, said: "We did not check Arkona�s calculations," according to Russian newspaper Vedomosti.

At that time, Strabag was also accused by Russian tax authorities of having knowingly used fake subcontractors to evade taxes. The authorities claimed the subcontractors owed 2.46 million Euros in back taxes.

Strabag spokeswoman Diana Klein was quoted in today�s Die Presse as saying "a controlled media campaign" was being directed at the firm in Russia. "We can imagine who is behind it," she added, without elaborating.

WirtschaftsBlatt reported today that the firm Inteko, controlled by billionaire Yelena Baturina, the wife of Moscow Mayor Yuri Luschkov, was one of Strabag�s chief competitors in the Russian capital.

Russian newspaper Kommersant said the ministry for regional development would decide whether Strabag�s planning licence would be revoked after a court hearing. Strabag says construction firms can obtain two licences in Russia, one for building and a second for planning.

But all licences will be abolished in 2010, and construction firms will then be subject to self-regulating organisations of such firms that will make decisions on building permits. Strabag is already a member of such an organisation.

Klein said: "They want to take away our licence before we can become active in such an organisation."

Strabag has contracts worth one billion Euros for construction work in Russian city Sochi in preparation for the 2014 Winter Olympics.

A tenth of Strabag�s annual turnover comes from its business in the Russian Federation.

Austrian Times

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authorities contractor competitors newspaper authority Luschkov capital Strabag taxes Yuri Moscow threatened Euros controlled licence Arkona Russian Klein construction loss

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