The operator of outdoor advertising sued for 1 billion rubles to the Moscow authorities

One of Russia’s largest operators of outdoor advertising “Olympus” (formerly “Belief — the Olympus”) filed a lawsuit more than 1 billion roubles to the Department for media and advertising of Moscow. Information about this is available in the files of arbitration cases. The essence of plaintiff’s claims is not disclosed.

The claim addressed to the Moscow authorities was filed after two weeks ago, the Department had terminated the operator agreement. As has informed “sheets” the representative office Konstantin Gorokhov, the company failed to remit to the Department of 730 million rubles.

In 2013 and 2014, the Moscow authorities have held two rounds of auction for placement of outdoor advertising. “Olympus” was involved in both trades. In 2014, the company received 124 seats for 1,8 billion rubles, and the year before, the company won two lots at 1238 (the cost of their use is 13,726 billion rubles). The company received the right to operate advertising media ten years is the maximum term under the law “About advertising”.

How to write “Vedomosti”, the winners of the auctions of the Moscow government promised to pay to the budget within ten years more than 100 billion rubles, which is six times higher than the income of the city for the previous decade. After Contracting, the operators have paid the first and last years the use of advertising space, and subsequently had to transfer to the city for 1/10 of the full payment per year. In particular, in 2015 the company (all together) had to transfer to city 8 bn In the beginning of January, the head of Department of economic policy of the capital Maxim Reshetnikov said that the city budget by the end of 2015 received 7 billion rubles from renting out sites for outdoor advertising. As noted by the Agency “Moscow”, the official described this as a very large sum of money.

In late January, the newspaper wrote that “the Olympus” did not have enough money to pay for the contract in 2016. The payments were to be made before the end of 2015. Previously, the operator transferred the city 178,5 million roubles following the results of auction of 2014 and 118 million roubles on one of the contracts from 2013 (on the use of structures of small size). The publication notes that the company failed to pay the contract for use of 687 places on billboards and supersites on 730 million rubles.

According to two participants of the market of outdoor advertising, to pay to the city, “Olympus” tried to obtain the credit in Bank of Moscow, but means a credit institution refused to provide. Now VTB (controls the Bank of Moscow) is studying the possibility to introduce external supervision in the “Olympus”, says one of the market participants and confirms a person familiar with the situation in the company. The decision on this issue will depend on whether the operator to service the previous loan more than 2 billion rubles, wrote earlier “Vedomosti”.

Earlier, on 24 December 2015, on the website of the Arbitration court of Moscow has registered the claim of the Department of media company “Olympus”. According to information on the court’s website, the city decided to collect from the company 407 thousand rubles. the First hearing will take place on 3 March.