State contract traps: how one order ruined a St. Petersburg contractor / RBC News Agency
A court trial has begun for the St. Petersburg JSC SPE Biotechprogress, which planned to implement the largest infrastructure project in the Crimea.
JSC SPE Biotechprogress, a large St. Petersburg engineering company that develops and manufactures equipment for water treatment and wastewater treatment, in 2017 won a tender for the construction of new sewage treatment facilities for SWF “Yuzhnye” (the largest Russian wastewater treatment project envisaged by the federal target program at that time) in Sevastopol, Crimea.
A number of events that occurred since the very start of the project have led the company to bankruptcy and its CEO to being accused of embezzling more than 2 billion roubles in prepayment for the project.
Andrei Gusev, Managing Partner of Borenius Russia, shared his point of view with the RBC News Agency on the difficulties and problems faced by JSC SPE Biotechprogress during the work on the construction of SWF “Yuzhnye” and on the reasons that led to such a result.