‘The criminal suit of Yuri Repeta, former CEO of Noviy Grad (the local developer) is now being handled by Internal Affairs Administration,’ says Maxim Kasatkin, Director of Economic Offenses Department of Yekaterinburg Internal Affairs Administration.

‘The additional accounting examination by experts that should reveal which financial frauds have brought the company to its knees financially has not been completed yet; the case could be placed with the court at the end of May 2007,’ Mr. Kasatkin explains.

Yuri Repeta is accused of fraud; in the meantime, HydroSpetsStroy Ltd. (Noviy Grad’s general contractor) is undergoing bankruptcy proceedings and owes its creditors more than 55 million RUR. Officers from the Economic Offenses Department searched the apartments and offices of Noviy Grad and HydroSpetsStroy’s top executives last November to withdraw the companies’ financial records.