Supreme Court Orders Billion-Ruble Fine for Coastal Damage

The Supreme Court of Russia has mandated a developer to pay over 1 billion rubles after more than 1,850 tons of waste were dumped into the Black Sea.
Feb 3, 2026
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The hotel was never completed.
Source:
press service of the prosecutor«s office of Krasnodar Krai

The Supreme Court of Russia has ordered the developer Sipine Resort LLC to pay over 1 billion rubles (about $10 million at current rates) for environmental damage. Back in 2022, authorities signed an agreement with the company for the construction of a large complex in the Tuapse district, in the village of Sosnovka. The investment in the project was estimated at 8 billion rubles (about $80 million at current rates). The hotel was planned to be completed in 2026.

«Here, administrative and technical zones, guest areas, a conference zone, a pool and gym, open sports grounds, cottages for long-term stay, as well as a network of restaurants and walking areas will be built. The project envisions the possibility of constructing a yacht pier and boat sheds», — the Tuapsinskiye Vesti newspaper quoted then deputy head of the Tuapse district Sergey Sidorenko [who now heads the Belorechensky district].

However, as it later became known, during construction the natural landscape of the site was altered. The fertile soil layer was destroyed over an area of more than 1,300 square meters. Moreover, over 13 tons of garbage ended up on the shore, and more than 1,850 tons of waste were dumped into the sea by the developer. Criminal cases were initiated against the general director and contractor of the firm under Part 1 of Article 330 of the Criminal Code of the Russian Federation (arbitrariness) and Article 246 (violation of environmental protection rules during work, if it led to other grave consequences).

In April 2025, the case was sent to court. The court of first instance, as well as the appeal, concluded that the developer«s guilt was proven. However, the cassation court of general jurisdiction overturned the court decisions, citing a number of violations, and sent the case for reconsideration. But the Supreme Court overturned the cassation decision, considering the earlier court rulings lawful.

As a result, Sipine Resort LLC was fined 320 million rubles (about $3.2 million at current rates) for damage to the Black Sea and another 694 million rubles (about $6.9 million at current rates) for soil damage.

«The defendant has been assigned the obligation to reclaim the land plot», — the Supreme Court said.

The company Sipine Resort LLC was founded in Krasnodar in October 2020. It was previously owned by Novruzov Serkhan Shakhlar Ogly, who organized the construction of the hotel complex. In August 2023, the company was re-registered to Hasan-zade Tarkhan Gurban Ogly. The organization«s net loss for 2024 amounted to 25.4 million rubles (about $254,000 at current rates).

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