TGK-9, one of Sverdlovsk Region’s major power suppliers, refused to meet its contractual obligations imposed by the multilateral joint liability agreements it signed with Sverdlovenergo and Permenergo.

The company’s report for the second quarter of 2008 states TGK-9 and Permenergo signed a multilateral joint liability agreement in November 2006. In 2007, a similar agreement was signed with Sverdlovenergo. According to the report, the company’s share of responsibility came to 66.51% and 60.76% in the agreements with Permenergo and Sverdlovenergo, respectively.

Later on, both Permenergo and Sverdlovenergo underwent inspections by the taxation authorities, whereupon certain violations of tax laws were detected. Both companies were brought to legal responsibility: the former had to pay 631,493,513 RUR worth of taxes, 127,977,084 RUR worth of fines, and 128,526,614 RUR worth of tax sanctions. The latter paid 763,517,817 RUR worth of taxes, 277,380,789 RUR worth of fines, and 150,246,871 RUR worth of tax sanctions.

TGK-9 refused to meet its contractual obligations.

‘The company was notified of Permenergo and Sverdlovenergo’s fines on January 14, 2008 and January 29, 2008, respectively. However, not all the parties involved in the multilateral agreement have signed it yet; therefore the agreements have not been entered into. Moreover, our stockholders intend to prove in court that both multilateral joint liability agreements should be considered invalid within the moment of signing them,’ the spokesperson for TGK-9 reports.