COBALT represents the Republic of Estonia in the VEB Fund case

COBALT represents the Republic of Estonia in judicial proceedings in the VEB Fund case.
Pärnu Kalur Holding,  A.O. Imbi (bankrupt), Akke (in liquidation), TARTU LIHAKOMBINAAT (bankrupt), Volta, Latvias kugnieciba, Saare Kalur, and KREENHOLMI VALDUSE AKTSIASELTS have filed an action against the Republic of Estonia for determination of fair compensation in relation to the activities of the Republic of Estonia upon the foundation of VEB Fund and compensation for the certificates issued on the basis thereof.

The dispute dates back to almost 30 years ago and has received a lot of attention in Estonia ever since. The current appellants have repeatedly filed claims regarding the activities of the VEB Fund against various state authorities of Estonia. Presidium of the Supreme Soviet of the Russian Federation decided to freeze the government accounts of foreign operations of Balti Ühispank (Union Bank of the Baltics, UBB) and the Bank of Estonia which were held in the Bank for Foreign Trade of the USSR.

In December 1992 the Central Bank of Russia advised the Bank of Estonia that until the Republic of Estonia and the Russian Federation reached an agreement regarding the participation of Estonia in the payment of the external debt of the USSR, Põhja-Eesti Aktsiapank (North Estonian Bank) and UBB would not be able to freely use their money held in VEB Bank. By autumn 1992, both banks whose money was blocked in VEB Bank, were insolvent and facing bankruptcy. In order to ensure the sustainability of banking in Estonia, the Riigikogu passed a resolution in January 1993, accounts of Estonian banks frozen in the Bank of Foreign Trade of the USSR, whereby VEB Fund was established. The main function according to the resolution of the Fund was to find solutions for satisfying the claims of Estonian banks, other legal and natural persons regarding the accounts frozen in the former Bank of Foreign Trade of the USSR.

The Republic of Estonia contents the action in full, considering that the actions have been filed in violation of the due term, and are also unreasoned as to the merits of the matter.

COBALT team advising the client consists of Specialist Counsel Kadri Matteus and Legal Counsel Indrek Koolmeister.

Find out more here: Äripäev