On October 1, the Moscow City Arbitration Court (MCA) ordered to continue the interim measures imposed earlier on the application of the Prosecutor General's Office, who believe that Raven Russia's transactions involving commercial real estate were a sham. These measures relate to the warehouses acquired by Raven Group from a British company that has left the Russian market.

These measures have a critical impact on the business operations. The tenants of the real estate are Russian largest retailers, marketplaces, pharmaceutical and manufacturing companies. Any disruptions in their operations may further complicate the logistics that is already under pressure due to various negative factors.

The immediate consequences of the restrictive measures and injunctions instigated by the Prosecutor General's Office may seem not that significant, but the longer the dispute lasts, the greater the damage will be to the landlord and its business.

The interim measures imposed on the application of the Prosecutor General's Office do appear excessive. For the purposes of the public authority's claim, it was sufficient to limit the transfer of the ownership title to the real property rather than prohibit all transactions with it.

Raven's business is based on the consummation and extension of lease agreements, therefore, any restriction on transactions involving arrested properties will lead to material adverse effects. Raven will not be able to enter into new lease agreements, register side letters to existing lease agreements necessary, e.g., for extending pharmaceutical licenses by its tenants or bring in new tenants for vacated properties.

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