Grigory Pasko Was Cross-Examined by Court

Justice Hildyard of the High Court of England and Wales continued proceedings on suit of Bank St. Petersburg vs Russian businessman Vitaly Arkhangelsky and Arkhangelsky's counterclaim against the bank.

Since February 29, the proceedings continue in London.

On Monday, the bank's lawyer Mr Lord cross-examined Arkhangelsky's witness investigative journalist Grigory Pasko. The journalist told about his investigation for the story on Arkhangelsky's case. After interviewing a number including bank staff and experts he concluded that Bank of St Petersburg has done a "breach of law and Mr Arkhangelsky did not commit such a breach".

On Tuesday, Mr Lord is expected to cross-examine Vladimir Ashurkov who works for the Foundation for Fighting Corruption headed by one of the Russian opposition leaders Alexey Navalny. Ashurkov is going to tell about his investigation into connections between Bank of St Petersburg, the Baltic Fuel Group and Renord Invest Company

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The bank claims that Arkhangelsky, who, together with his family, left Russia in 2009 and was granted political asylum in France, did not settle with creditors and tries to recover a debt.

Archangelsky in his statement of claim says that during the global financial crisis the bank agreed to defer payment on loans for six months. As a collateral, the bank demanded Archangelsky to transfer the shares of companies that were a part of his Oslo Marine Group - West Terminal port complex and Scandinavia insurance company, the owner of a half of Onega terminal. Before the stipulated term expired, the bank demanded loan repayment and later used its political contacts including top law enforcement officers and St. Petersburg Governor Valentina Matvienko, sold the shares to a sister firm at a lower price and changed the executive of Arkhangelsky's companies. He estimates the damages at $500 million.

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The course of the trial will be covered by the press-office.

Contact: Natalia Khmelik natalya.hmelik@gmail.com