Russian Court Orders Nizhny Novgorod Kremlin to Pay 24M Rubles for Unpaid Repairs
A Russian court has ruled in favour of construction firm Fregat in its dispute with the Nizhny Novgorod Kremlin. The legal battle centred on unpaid work for reinforcing a slope after a retaining wall collapse. The court ordered the Kremlin to settle debts totalling over 24 million rubles. The conflict began in December 2022 when Fregat signed a contract worth 117.4 million rubles to stabilise the slope. Work proceeded under emergency conditions following the wall's failure. By July 2024, the company had completed all planned activities, though the final cost rose to 131 million rubles due to extra tasks.
The Nizhny Novgorod Kremlin refused to accept the finished project. Officials cited technical issues, such as violations of building codes and missing documentation like as-built drawings and surveys. Legal objections included absent permits and unmet contractual deadlines. Despite these claims, the Kremlin did not submit formal objections.
In 2023, the court examined Fregat's case and found its work substantially complete. Judges dismissed most of the Kremlin's arguments and ordered payment. The final ruling required the client to cover 24 million rubles in outstanding debt plus 920,000 rubles in penalties. The decision confirms Fregat's right to recover funds for the emergency repairs. Payments already received amount to around 25 million rubles. The remaining sum must now be settled in full, including the imposed penalties.
