OREANDA-NEWS. July 02, 2010. OJSC Transsiberian Reinsurance Corporation North-Western Bureau branch (Saint-Petersburg) paid RUR 262 thousand to OJS Progress Garant Insurance Company under proportional reinsurance contract.

The original insurance contract covered risks of non-execution or improper execution of state or municipal contract concluded by Vostokgeologia LLC to build appraisal well on Kamchatka Territory. Subsurface Management Department in Kamchatka (Kamchatnedra) was the beneficiary of the state contract.

Taking into account that OJSC Vostokgeologia failed to execute its obligations properly, which resulted in the loss of Kamchatnedra, this event was acknowledged insured. OJSC Vostokgeologia is sued for insolvency (bankruptcy).

Total loss amounted to RUR 8.5m with Transsiberian Re share of RUR 262 023. After receipt of full loss documents Transsiberian Re North-Western Bureau paid for the loss.