Contractor of Druzhba Park fails to challenge court on 65 million debt

Company Avtomagistral SK, which was previously engaged in the reconstruction of Rostov«s Druzhba Park, unsuccessfully appealed the court decision. The Arbitration Court of Rostov Region left its cassation appeal unsatisfied. Earlier, the firm was ordered to pay 65.6 million rubles (approximately $729,000 at current rates) as compensation for unfulfilled work and identified defects.

In the case materials, the contractor«s position is cited: »In the company«s opinion, the institution in the lawsuit demanded to recover unjust enrichment and costs for eliminating defects under the municipal contract, but the court went beyond the claims and recovered the specified amount as losses.»

According to data from the SPARK system, Avtomagistral SK was registered in 2014 in Yessentuki, Stavropol Krai. The company«s general director is Sergey Kazeko, and the beneficial owner is Medeya Aytova. After 2022, the company»s revenue fell by more than half, amounting to 416 million rubles (approximately $4.62 million at current rates) in 2024. The net loss for this period exceeded 30 million rubles (approximately $333,000 at current rates). In previous years, from 2020 to 2022, the company actively participated in state procurement, receiving contracts worth over 4.5 billion rubles (approximately $50 million at current rates). Besides landscaping, Avtomagistral SK was involved in road repair and construction. Currently, the company is listed in the register of unscrupulous suppliers.

The contract for the reconstruction of Druzhba Park was concluded in spring 2022. Its total cost was 562.3 million rubles (approximately $6.25 million at current rates). The contractor was supposed to complete all work by November 20, 2024, but two months before this deadline, the construction readiness of the facility was estimated at only 35%.

In fact, the work on the site was carried out not by Avtomagistral SK LLC, but by the subcontractor organization Mart Don Stroy. Contractor representatives explained the delay from the schedule due to problems that were identified after the start of work and required changes in the project and estimate.

A new project for the reconstruction of Druzhba Park was prepared by the end of last year. The exact cost of the upcoming work and the deadlines for their completion have not yet been determined. According to Yury Slyusar, in 2026 the authorities plan to reconstruct the central part of the park.