TALLINN — Estonia’s national government will have to pay tens of millions of krooni from the state budget after the Tallinn District Court ordered it to finally reimburse VEB fund certificates, culminating a 17-year legal dispute.
The VEB Fund was created by the Estonian government in 1993 after the Russian parliament froze around 800 million krooni (€51 million) worth of currency (including U.S. dollars, U.K. pounds and others) belonging to Estonian companies, a part of the process of the break-up of the Soviet Union. The fund was tasked with compensating these companies with [private_supervisor]cash certificates from the Bank of Estonia. However, the fund has not issued the certificates.
The Ministry of Justice has kept a tight lid on the case details, refusing to reveal the precise sum of money the state now has to pay according to the court’s decision.
“The decision will be appealed, but it is not yet possible to say the amount of the claim,” Diana Kõmmus, press spokeswoman of the Ministry of Justice told Baltic Reports. “As the court argument is still ongoing, then we will not comment more on this matter.”
The court ordered the VEB fund certificates of these companies to be reimbursed by the central bank: Rahuldada Akke AS, AS Tartu Lihakombinaat, AS A. O. Imbi, AS Saare Kalur and AS Pärnu Kalur Holding. The court win will provide a much-needed cash influx for three of the companies — Rahuldada Akke is undergoing liquidation procedures and Tartu Lihakombinaat and Imbi have already declared bankruptcy.
The companies sued the government 15 years ago, but so far the courts have made their decision on favor of the government and the central bank. The decision still leaves the VEB fund 250 million krooni (€16 million) worth of unclaimed certificates, as the aggrieved companies claimed only 50 million krooni (€3.1 million). [/private_supervisor] [private_subscription 1 month]cash certificates from the Bank of Estonia. However, the fund has not issued the certificates.
The Ministry of Justice has kept a tight lid on the case details, refusing to reveal the precise sum of money the state now has to pay according to the court’s decision.
“The decision will be appealed, but it is not yet possible to say the amount of the claim,” Diana Kõmmus, press spokeswoman of the Ministry of Justice told Baltic Reports. “As the court argument is still ongoing, then we will not comment more on this matter.”
The court ordered the VEB fund certificates of these companies to be reimbursed by the central bank: Rahuldada Akke AS, AS Tartu Lihakombinaat, AS A. O. Imbi, AS Saare Kalur and AS Pärnu Kalur Holding. The court win will provide a much-needed cash influx for three of the companies — Rahuldada Akke is undergoing liquidation procedures and Tartu Lihakombinaat and Imbi have already declared bankruptcy.
The companies sued the government 15 years ago, but so far the courts have made their decision on favor of the government and the central bank. The decision still leaves the VEB fund 250 million krooni (€16 million) worth of unclaimed certificates, as the aggrieved companies claimed only 50 million krooni (€3.1 million).[/private_subscription 1 month] [private_subscription 4 months]cash certificates from the Bank of Estonia. However, the fund has not issued the certificates.
The Ministry of Justice has kept a tight lid on the case details, refusing to reveal the precise sum of money the state now has to pay according to the court’s decision.
“The decision will be appealed, but it is not yet possible to say the amount of the claim,” Diana Kõmmus, press spokeswoman of the Ministry of Justice told Baltic Reports. “As the court argument is still ongoing, then we will not comment more on this matter.”
The court ordered the VEB fund certificates of these companies to be reimbursed by the central bank: Rahuldada Akke AS, AS Tartu Lihakombinaat, AS A. O. Imbi, AS Saare Kalur and AS Pärnu Kalur Holding. The court win will provide a much-needed cash influx for three of the companies — Rahuldada Akke is undergoing liquidation procedures and Tartu Lihakombinaat and Imbi have already declared bankruptcy.
The companies sued the government 15 years ago, but so far the courts have made their decision on favor of the government and the central bank. The decision still leaves the VEB fund 250 million krooni (€16 million) worth of unclaimed certificates, as the aggrieved companies claimed only 50 million krooni (€3.1 million).[/private_subscription 4 months] [private_subscription 1 year]cash certificates from the Bank of Estonia. However, the fund has not issued the certificates.
The Ministry of Justice has kept a tight lid on the case details, refusing to reveal the precise sum of money the state now has to pay according to the court’s decision.
“The decision will be appealed, but it is not yet possible to say the amount of the claim,” Diana Kõmmus, press spokeswoman of the Ministry of Justice told Baltic Reports. “As the court argument is still ongoing, then we will not comment more on this matter.”
The court ordered the VEB fund certificates of these companies to be reimbursed by the central bank: Rahuldada Akke AS, AS Tartu Lihakombinaat, AS A. O. Imbi, AS Saare Kalur and AS Pärnu Kalur Holding. The court win will provide a much-needed cash influx for three of the companies — Rahuldada Akke is undergoing liquidation procedures and Tartu Lihakombinaat and Imbi have already declared bankruptcy.
The companies sued the government 15 years ago, but so far the courts have made their decision on favor of the government and the central bank. The decision still leaves the VEB fund 250 million krooni (€16 million) worth of unclaimed certificates, as the aggrieved companies claimed only 50 million krooni (€3.1 million).[/private_subscription 1 year]
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