Baltic States – CIS, Estonia, Investments, Legislation, Real Estate, Russia

"Russian higher officials act so idiotically, that there is no need for Western sanctions when it comes to Crimea. For example, the corrupt former presidential envoy of [Russian President Vladimir] Putin [Vice Admiral Oleg] Belaventsev is doing everything to ensure that nobody invests in Crimea by influencing the courts," Palts told the newspaper.

The court of appeal in Crimea on July 19 decided that the company of Palts, Kaskad Investments, owns the 20-hectare piece of real estate in Balaklava, near the Crimean military port of Sevastopol, while the ruins of all buildings of the former military campus on that plot of land belong to the Russian Ministry of Defense.

Kaskad Investments has until September 25 to take the matter to the highest court of arbitration in Central Russia in Kaluga. Should the company lose the second appeal, Kaskad Investments may still turn to the European Court of Human Rights with the claim that their assets have been seized with illegal judicial decisions and demand at least damages from Russia.

The Russian Ministry of Defense will most likely aim for a court decision to dispossess Kaskad Investments and seize the plot itself as well.

Palts is fighting the court battle over a 20-hectare piece of real estate in Balaklava, near the Crimean military port of Sevastopol. Palts bought the former military campus of nearly 30 buildings from the Ukrainian defense ministry for ten million hryvnia, or 1.65 million euros at the time, in 2006. The site was a Soviet underground missile complex known as B-42, meant to protect the fleet based in Sevastopol. The complex was left idle after the collapse of the Soviet Union. Palts ' company bought the land under and around the buildings from the town of Sevastopol.

Palts first ran into problems when Russia annexed Crimea in 2014. His property came to the attention of the Russian Defense Ministry that wanted to reclaim all territories that used to belong to the Soviet ministry of defense. The Crimean media has reported that the ministry wants to retrieve 275 former military campuses. The ministry sued Palts' company in January of last year, claiming that Kaskad Investments purchased the territory from Ukraine's defense ministry illegally.

Palts spent 10 million U.S. dollars on land for what will be a resort bordering a nature preserve. The detailed plan was completed in 2010, and Palts started looking for investors from Europe and Asia to contribute, along with himself, around 200 million dollars to the project called Balaklava Blue. In his presentation, Palts promises to build the best wellness resort in the Black Sea region. The businessman said a year ago that he puts the value of his real estate and detailed plan in Crimea at 17 million dollars.