The first auction for the Moscow Cultural and Business Centre (better known as the Moscow House), located at Marijas Street 7 in Riga, was unsuccessful. Potential investors were not interested in the property. In this regard, the state plans to reduce the initial price by 20%, said Andris Varna, a member of the board of VAS Valsts nekustamie īpašumi (VNĪ). As reported, the Moscow House was put up for auction with a starting price of 3.57 million euros. It is planned that a decision on reducing the price will be made no earlier than September 24, and then, on October 1, a second auction will be held. "Despite the extensive work done by VNĪ to attract potential investors and real estate brokers, the current auction price is not attractive enough for market participants. The specific use of the property, focused on cultural functions, does not meet current demand, so a potential owner of the building, having made additional investments in the building, must adapt it to functions that could better meet the requirements of both the local and international markets," Varna noted. The funds received from the sale of the Moscow House will be transferred by Valsts nekustamie īpašumi to the state budget, and then they will be used for general support of the residents of Ukraine. Built in 1976 and renovated in 2002, the Moscow House is a five-story building with one basement floor and a total area of 4,482.4 square meters. The building is known for its unique architecture and has so far served as a venue for various cultural and business events, including theater performances and film screenings. The building's location in the center of Riga provides convenient access for both pedestrians and vehicles, as it is surrounded by the city's main streets – Marijas, Alfreda Kalniņa, Kr.Barona and Merkel. As Delfi reported, on January 11, the Saeima adopted the law "On Actions with Real Estate Necessary to Eliminate a Threat to National Security" in its final reading. This document provides for the transfer of Moscow House to state ownership. The consideration of the bill was initiated by the Saeima National Security Committee, headed by MP Ainars Latkovskis (New Unity). Arguments in favor of nationalizing the building: under the guise of cultural events and interest-based education, political events threatening national security were held in Moscow House. The liquidation of Moscow House, which is a symbol of Russian policy towards compatriots, will eliminate the threat to Latvia's national security and statehood. In February, it was reported that the Ministry of Transport was planning to transfer Moscow House to the ownership of the Ministry of Finance, which would then sell it at auction. The Ministry explained that they do not manage real estate that is not related to the infrastructure of the transport and communications industry, so the Ministry does not have the ability to manage the building. Ownership rights to the "House of Moscow" are assigned to the Moscow City Property Department. The responsibility for legal representation historically belonged to JSC Maskavas kultūras un biznesa centrs Maskavas nams, which belongs to the Moscow City Property Department. Since March 10, 2020, the rights belong to the representative office of a foreign businessman – the Moscow City Unitary Enterprise "Moscow Center for International Cooperation", to which property rights are assigned in the Land Register for an indefinite period. The structures of both legal entities are directly linked to the influence of the city of Moscow, according to the annotation to the bill. The Moscow City Property Department is a structural unit subordinate to the Moscow City Government. And the government is headed by Moscow Mayor Sergei Sobyanin. In turn, the actual owner of the "Moscow Center for International Cooperation" is considered to be Russian President Vladimir Putin. On February 25, 2022, Sobyanin and Putin were included in the sanctions lists of the EU and the US Bureau of Foreign Capital Control. On December 21 and 22 last year, the State Security Service carried out criminal proceedings in the House of Moscow – "in connection with a possible violation of EU sanctions against Russia."
PHOTO: The state failed to sell the Moscow House on the first try. The price will be reduced
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