Yelabuga Development Assistance Fund went bankrupt over fireworks

A non-profit organization founded in December 2015 in Yelabuga (Republic of Tatarstan) was declared insolvent.  The decision on the bankruptcy of the Fund, created to optimize the living conditions of the population of the municipality, was taken by the republican arbitration on the claim of the ‘Laser City 96’ company.

A company specializing in pyrotechnics did not receive about a million rubles.  The amount was promised for hosting a holiday show in 2019.

Then, during the Day of Tatarstan, the VI International Pyrotechnics Festival under the name ‘Poetry of Fire.  Elabuga-2019’ was held in the region. The contractor for the organization of fireworks was a creditor company.

The contract concluded with the company provided for payment by the end of 2019, however, in fact, the Fund paid only a tenth of the amount (about 100 thousand).

The firm turned to the arbitration of the Sverdlovsk region, which took its side.  According to the verdict of the arbitration court, which entered into force on August 10, 2021, the Fund from Yelabuga had to pay about 1.1 million rubles, including interest and legal costs.

The arbitration of Tatarstan initially set the bankruptcy procedure until the end of 2021.  Subsequently, the court session was postponed several times, but recently the Fund has officially received the status of bankrupt.  The bankruptcy proceedings are expected to be held until August 8, 2022.

The case file does not say what exactly caused the insolvency of the non-profit organization.

It is known that the Fund was formed at the expense of voluntary contributions and previously participated in the organization of many social and cultural projects in the region.

It is reported that in 2018, the funds raised through the Fund were spent on the celebration of Victory Day and the repair of burial places of war veterans.  The Fund also spent millions of dollars on various festivities (Sabantuy, New Year, City Day, etc.).