Commercial Court №1 of Huelva (Spain) (El Juzgado de lo Mercantil Número Uno de Huelva) considered today an application to annul the arrest of the Russian Federation’s misappropriated fishing trawlers. Having heard pleas by the parties concerned, the Court withdrew to consider judgment. A decision is expected to follow soon.

The vessels were detained in the Spanish port as a result of a request by EPAM, which is representing the interests of the Russian Federation in this matter. The arrest of the trawlers is a provisional measure necessary to prevent their illegal use by the persons accused of fraudulently taking possession of them and to prevent their possible resale of the vessels to new owners.

The detention of the Trawlers in Spain also provides security for the claim seeking recovery of the ships from illegal ownership which had been filed earlier by the OJSC “Archangelsk Trawler Fleet” to the Arbitration Court of the Murmansk region and which was granted on June 6, 2006.

Notwithstanding the attempts of the Mauritanian party to have the arrest of “Capitan Kononov”, “Yuozas Alexonis” and “Trawlmeister Mogutov” cancelled, this provisional measure will remain in force until the judgment of the court of Huelva, which is due soon.

Background Note

In June 2004 three Russian vessels were arrested in Mauritania while fishing - “Capitan Kononov”, “Yuozas Alexonis” and “Trawlmeister Mogutov” owned by the OJSC “Archangelsk Trawler Fleet”, 100% shares of which belong to the Federal Ministry for Federal Property Managements on behalf of the Russian Federation. The grounds for the arrest were a claim of the Mauritanian company – Societe de Promotion de la Peche (SPP), that accused the OJSC “Archangelsk Trawler Fleet” of failing to repay an alleged debt of USD 13 million. The authenticity of the supporting documents submitted to prove the validity of the debt is still not proven.

On June 6, 2006 the Arbitration Court of the Murmansk region ordered Societe De Promotion De La Peche to return the fishing trawlers “Capitan Kononov”, “Yuozas Alexonis” and “Trawlmeister Mogutov” to their legal owner – the OJSC “Archangelsk Trawler Fleet”.