‘The accounting examination by experts that is to show what has led to such a trouble with Noviy Grad (the local developer) is expected to have been completed by April 2007. This examination is being conducted at the order of Sverdlovsk Region public prosecution authorities,’ says Maxim Kasatkin, Director of Economic Offenses Department of Yekaterinburg Internal Affairs Administration.

All this is part of the investigation related to the criminal suit of former CEO of Noviy Grad Yuri Repeta who is charged with fraud.

In the meantime, HydroSpetsStroy Ltd. (Noviy Grad’s general contractor) is still undergoing bankruptcy proceedings and owes its creditors over 55 million RUR.

The officers of Economic Offenses Department of Yekaterinburg Internal Affairs Administration searched the premises of the two companies as well as the apartments of the CEOs and withdrew a number of accounting papers in November 2006.