Crushing victory in court over Arkhangelsk administration
The Arkhangelsk Oblast administration will have to pay regional energy company TGK-2 a total of 300 million RUB of compensation following Governor Ilya Mikhalchuk’s decision to freeze tariffs on heating last year.
In his speech to the regional parliament in December 2008, Mikhalchuk announced that tariffs on heating will be held unchanged for six months. That angered regional power supplier TGK-2, which subsequently sued the governor and his administration. TGK-2 won the court case, and Arkhangelsk will now have to pay 300 million RUB of compensation, Bclass.ru reports. That will not come easy for the regional administration, which already has had to make several serious cuts in its budget. As reported by BarentsObserver, the regional budget in 2009 got its revenues reduced by almost 30 percent. TGK-2 is a leading heat and power company in Northwest Russia with generating capacities in six regions - Arkhangelsk, Vologda, Kostroma, Novgorod, Tver and Yaroslavl.
