Russian Court Voids $1.3M Sunken Property Deals Over Bid-Rigging Claims

114 million rubles must be repaid after a lone contractor won deals without competition. Was this a case of corruption—or just sloppy bureaucracy?

, and Administrator

2026 April 22 . 8:19 AM

1 min read

The image shows a boat with a hole in the side of it, surrounded by water. On the right side of the... — The image shows a boat with a hole in the side of it, surrounded by water. On the right side of the image, there is a railing, and on the left side, there are a few objects on the surface of the water. This image is a reminder of the tragedy that occurred when a submarine was sunk in the ocean.

Our website, April 21

Russian Court Voids $1.3M Sunken Property Deals Over Bid-Rigging Claims

The Magadan Regional Prosecutor's Office has found that the region's Fisheries Department signed three state contracts without competitive bidding on two occasions in 2023—in April and October—according to a statement from the prosecutor's press service.

A single contractor was awarded the work to recover and dispose of sunken property in Nagayevo Bay in the Sea of Okhotsk. The contract price was based solely on the contractor's commercial proposals.

From November 2023 to November 2024, the contractor received 114 million rubles for partially completed work. Prosecutors deemed these actions a violation of the rights of other market participants and a breach of the principle of efficient public spending.

The oversight agency filed a claim with the Magadan Regional Arbitration Court to declare the contracts void and enforce the consequences of their invalidation. The court ruled in full favor of the prosecution, ordering the contractor to repay 114 million rubles. The decision has not yet entered into legal force.