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Court rules to completely reject the claim of “Polotsktransneft Druzhba” against LatRosTrans and cancels the claim securing

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Court rules to completely reject the claim of “Polotsktransneft Druzhba” against LatRosTrans and cancels the claim securing

december 9, 2011 / LatRosTrans

Today the Latgale Regional Court (in Rēzekne) passed a judgment to completely reject the claim of “Polotsktransneft Druzhba” against LatRosTrans (LRT) on ownership rights to the technological oil in the oil pipelines of LRT.

Today the court also cancelled the previously applied claim securing for the part of the technological oil that is in the oil pipeline owned by LRT. Therefore, LRT no more has any restrictions to handle this oil. In turn the 40 thousand tons of technological oil that was pumped out from the oil pipeline by LRT more than a year ago, performing its cleansing and conservation in line with the latest technologies, was never seized.

The manager of LRT Igors Stepanovs expresses satisfaction on the court judgment, emphasizing that a different solution was not possible at all. “I am certain that this court judgment will finally put an end to the doubts whether we are the actual owners of this technological oil. Now LRT can continue the commenced conservation of the oil pipeline, eliminating any ecological risks, and the company will be able to restructure its activity in accordance with the present market situation”, Stepanovs explains.

Brief history of the case

The Byelorussian company “Polotsktransneft Druzhba” unexpectedly filed a claim in court a year ago, holding a view that the technological oil in the amount of 150 thousand tons in the oil pipelines of LatRosTrans belongs to them. The Byelorussian party tried to hold back reviewing the case in court on the merits, to politicize it, as well as changed its explanation several times as to how “Polotsktransneft Druzhba” has as if obtained ownership rights to the technological oil that has been in the oil pipelines of the Latvian-Russian joint venture LatRosTrans Ltd for nearly 20 years.

On December 7, 2010, the court secured the claim of the Byelorussian company “Polotsktransneft Druzhba”, prohibiting LRT to use and/or utilize the technological oil in the oil pipeline Polotsk-Ventspils owned by LatRosTrans in the territory of the Republic of Latvia. At the same time, the court declined the request of the Byelorussian company “Polotsktransneft Druzhba” to seize also the 40 thousand tons of oil that was already pumped out from the pipeline Polotsk-Ventspils, considering that there are no grounds to seize this oil.