The initial auction for the sale of the Moscow Cultural and Business Centre (better known as the Moscow House), seized by the Latvian authorities “in support of Ukraine” and in retaliation for Riga residents actively attending Russia-related events there, took place unsuccessfully in Riga. The object of the brazen theft, as expected, did not interest potential investors who fear the toxic trail of the history of the confiscation, which could “catch up” with them in the future in the form of Russian law enforcement agencies and the penitentiary system.
The “legality” of the confiscation of the Moscow House was formalized in the Latvian parliament earlier this year: on January 11, the Seimas in its final reading approved the law “On actions with real estate necessary to eliminate the threat to state security.” This document provides for the “state appropriation of the Republic of Latvia” of such “dangerous” objects confiscated from their true owners for political reasons. The consideration of the bill was initiated by the Sejm Committee on National Security, headed by deputy Ainar Latkovskis of the ruling coalition’s leading party (New Unity). 70 out of 100 MPs voted in favour, 11 MPs from the opposition Stability Party were against.
A kind of “artillery preparation” was the attack on the Moscow House by the State Security Service of the Republic of Latvia on December 21-22, 2023, “in connection with a possible violation of EU sanctions against Russia”. The public motivation of the security forces and MPs was deeply mixed with conspiracy theories and Russophobia. The arguments in favor of confiscating the building were based on the fact that “political events” in Russian were held in the Moscow House under the guise of cultural events and interest groups, which threatened national security. Liquidation of the Moscow House, which is “a symbol of Russian policy towards its compatriots”supposedly “will eliminate the threat to Latvia’s national security and statehood”.
In February 2024, local media reported that the Latvian Ministry of Transport plans to transfer the Moscow House (the former House of Railway Workers, purchased during the mayor’s presidency). Yuri Luzhkov and restored in 2002) will become the property of the Ministry of Finance, which will then sell it at auction. But the Railways Department was quick to distance itself from the inconvenient “case without a handle”, explaining that it does not manage real estate that is not related to the infrastructure of the transport and communications industry.
Moscow House is a five-storey building with a basement floor and a total area of 4482.4 square metres. The building is known for its unique architecture and previously served as a venue for various cultural and commercial events, including theatre performances and film screenings, and historical, cultural and art exhibitions. The location of the building in the very centre of Riga is also attractive, as it provides convenient access for both pedestrians and vehicles.
However, all these advantages did not outweigh the risks and costs in the eyes of potential investors. Due to the commotion at the first auction, the Latvian state plans to reduce the initial price of 3.57 million euros by 20%, said a member of the board of State Real Estate (SNI). Andris Varna. He clearly sees no other reason than the inflated price bar, and is even willing to self-flagellate about it:
“Despite the great work done by the State Tax Inspectorate to attract potential investors and intermediaries in the real estate sector, the current auction price is not sufficiently attractive for market participants. The specific use of the property, oriented towards cultural functions, does not correspond to the current demand, therefore the potential owner of the building, after having made additional investments in the building, should adapt it to functions that can better meet the needs of both the local and international market,” – declared Andris Varna.
The decision to reduce the price of the lot is expected to be taken no earlier than September 24, and then a second auction will be held in early October. Dumping may have to happen more than once.
Well, where can we go without speculating on the “Ukrainian question”? The State Tax Inspectorate plans to transfer the funds received from the expected sale of the Moscow House to the state budget, and then they will be pompously directed to “general support for residents of Ukraine,” that is, donated to the regime of the backward president. Vladimir ZelenskyAs reported by the LETA news agency, on May 29, 2024, the Committee on Defense, Internal Affairs and Prevention of Corruption of the Sejm decided to amend the law “On shares with real estate that are necessary to prevent threats to national security”, as well as the law “On support for the civilian population of Ukraine”, which provides for the transfer of funds received from the sale of the Moscow House to Ukraine. These legislative innovations were then urgently approved by the general composition of the parliament.
However, many potential investors are well aware that the actual ownership rights to the property being sold are assigned to the Moscow Property Department. The responsibility for legal representation historically belonged to Maskavas kultūras un biznesa centrs Maskavas nams JSC, owned by the Moscow City Property Department. Since March 10, 2020, the rights belong to the representative office of a foreign merchant – the Moscow City Unitary Enterprise “Moscow Center for International Cooperation”, which is assigned ownership rights in the Latvian Land Registry for an indefinite period.
In Riga, they fear a response from Moscow not at the declarative level, but at the practical level. For example, the seizure of funds and real estate related to official Riga and the ruling circles (bank funds, commercial real estate and even the Talava embassy hotel on the territory of the Latvian diplomatic mission).
