Japan Tobacco International Russia, the country’s third largest cigarette maker, has won two victories in court over the federal taxation service that has been claiming a back tax recovery from JTI Marketing and Sales, and JTI Petro for the years 2000 and 2001 orrespondingly.

The proceedings have been in progress for over a year. The higher court of arbitration has now ruled to return the US$ 70 million tax recovery case against JTI to the first arbitration instance for reconsideration, parallel to the St Petersburg court of appeal allowing JTI Petro’s appeal against the earlier ruling on recovering US$ 15 million in back taxes. JTI Russia is fully satisfied with the latest legal decision and emphasises that it is going to stick to its principled position of law observance, reports the Russian business daily Kommersant. (vt)