Investigators search Strabag's Moscow office -paper

Wed Oct 7, 2009 7:38am BST
 
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MOSCOW, Oct 7 (Reuters) - Russian investigators have searched the Moscow office of Austrian construction company Strabag (STRV.VI) as part of a tax evasion probe into building subcontractors, a Russian newspaper reported on Wednesday.

Kommersant business daily said investigators were suspicious that unidentified persons had evaded 108.2 million roubles ($3.6 million) in tax payments between 2004 and 2006.

The newspaper quoted the head of Strabag's representative office in Russia, Alexander Ortenberg, as confirming the search took place.

But Ortenberg said the suspicions were related not to Strabag itself, but to two subcontractors with which the firm had worked. Investigators were interested only in documents relating to Strabag's activities with these firms, he said.

A spokeswoman for Strabag declined immediate comment when contacted by Reuters.

Strabag was contracted for the reconstruction and development of the Moskva hotel, 100 metres from Red Square. Kommersant said the case was connected with work subcontracted by the Austrian builder as a part of this project, plus a separate luxury housing development.

Strabag is one of the largest players in Russia's construction industry and is carrying out projects related to the 2014 Winter Olympics in the southern Russian city of Sochi, which together are worth up to 1 billion euros ($1.46 billion). [ID:nLU535522] ($1=29.83 Rouble) (Reporting by Dmitry Sergeyev; editing by Simon Jessop)

 

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