Banks, EU – Baltic States, Latvia, Legislation, Lithuania
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Thursday, 28.03.2024, 15:47
Latvian businessman demands US 18.4 mln from Lithuania through arbitration
Based on information on the ICSID website, Roscins' request was received
on October 16 and is based on a Lithuanian-Latvian agreement on the promotion
and protection of investment.
This agreement states that parties have to try to settle any disputes by
means of negotiations before turning to arbitration. Audris Kutrevicius,
a spokesman for the Lithuanian Ministry of Justice, says negotiations with
Roscins provided no results.
The Latvian businessman claims to be the owner of Korofalt Ventures, Logotreck Productions, Machinery Trade, Mita Group and Advanta Group, which are all registered in offshore countries. He says he transferred USD 3.3 mln to USD 3.86 mln into the companies' bank accounts in the now-bankrupt Lithuanian bank Ukio Bankas for the purchase of TVs, video equipment, food products and other household appliances.
After prosecutors failed to identify the persons who transferred the
funds in 2011, Kaunas Regional Court deemed in 2012 the funds to be ownerless
assets and handed them over to the state. Ukio
Bankas had its banking license halted in February 2013, and the bank was
declared bankrupt later.