Crimean property fund sell off of ex military field to pay debts meets local opposition

Published: 10/25/1999

The Crimea Autonomous Republic Property Fund in Ukraine has decided to sell off the Oktyabrsky military airfield near Simferopol, formerly occupied by a Soviet heavy bomber regiment, who vacated the airfield in 1995. The airfield's runway, which was built for heavy bombers and for the landing of the Soviet re usable space shuttle , the Buran, is considered to meet international requirements and is suitable for civilian operation. In 1996, the airfield was passed to Krimtransavia, a company specifically formed and owned by the Property Fund to operate and develop the airfield. However, the company never actually became an airport operator and limited its activities to security functions. Despite this limited remit, Krimtransavia managed to acquire debts of $800,000, which led to the Crimean Arbitration Court seizing airfield property against the company's debts. After the seizure, the Property Fund decided to sell the airfield, although a commission of the Supreme Court of Crimea, which has other plans, has challenged this move. The commission has approached the administration of the adjacent Russian region of Voronezh and the Russian Black Sea Fleet, which operates from Sevastapol in the Ukraine, to undertake a programme of developing the airfield for civilian use.

Article ID: 1006