CORRECT&UPDATE: Natura Siberica says En+ Recycling’s suit may ruin it

(Corrects headline, lede to clarify relation of En+ Recycling to En+ Group, adds details in paragraph 6)

MOSCOW, Jul 22 (PRIME) – A 4.5 billion ruble suit filed by En+ Recycling, formerly a unit of multi-industry holding En+ Group, against Pervoye Resheniye, a company producing cosmetics under the Natura Siberica brand, may result in closure of its production facilities and stores, Pervoye Resheniye said on Wednesday and called the suit unlawful.

“We, Pervoye Resheniye LLC, the Russian producer of cosmetics under the Natura Siberica Natura Siberica, Babushka Agafiya’s Recipes, Organic Shop, Planeta Organica and others, are making an official statement that illegal actions are being taken against our company, which could lead to a complete shutdown of our operations, closure of our cosmetics production and of our store network, which will deprive thousands of people of their jobs and to the disappearance of high-quality and affordable cosmetics products from stores,” the company said.

En+ Recycling sued Pervoye Resheniye for a March 21 fire at its facility rented by Natura Siberica, in which the facility was burnt down.

“We state that the fire broke out through no fault of Pervoye Resheniye,” the company said, adding that the authorities listed a short circuit of faulty wiring as the reason for the fire. “Our company and En+ Recycling signed no act on division of utility responsibilities, which means that En+ Recycling was responsible for the electric cables, and that the short circuit was the fault of En+ Reycling.

“Speaking of the sum of the suit filed by En+ Recycling, we think that this figure is unrealistic and extremely overcharged, it has not been grounded by any calculations or proof so far. … We are unaware about the basis on which En+ Recycling calculated its damage at 4.5 billion rubles and demanded Pervoye Resheniye to pay,” the company said.

An En+ Group representative told PRIME that the multi-industry holding has ceased to be an owner of En+ Recycling since 2013.

En+ Recycling filed its suit to the Arbitration Court of the Moscow Region in May. At the beginning of June, the court issued an injunction by prohibiting the Federal Service for Intellectual Property to make any actions with the brands of Pervoye Resheniye, frozing a total of 65 trade marks. The court is to hear the suit on July 28.

(70.9668 rubles – U.S. $1)

End