The Primorye Territory Development Corporation is seeking to terminate its agreements with Royal Time Primorye, as a result of the latter missing its construction deadlines, Russian media reports.
The court filing was made on April 5 in the regional arbitration court.
Earlier, Primorsky Territory Vice-Governor Evgeny Polyansky said that residents of the Primorye gambling zone who fail to meet the construction deadline stipulated in their investment agreements will face penalties up to the termination of their contracts, while their land lots will be allocated to new investors.
Polyansky at the same time praised Melco for its successful implementation of investment project – Tigre de Cristal Casino.
Royal Time Primorye started building its first gaming resort called Phoenix worth US$215 million in March 2016. Its parent company Royal Time Group has stakes in four Russian zones – Azov-Citi, Yantarnaya (Amber), Primorye and Siberian Coin.
Meanwhile, according to local publication Vostok-Media, Polyansky reproached not only Royal Time Primorye, but also Diamond Fortunes Holding for “unsatisfactory pace of construction”. A representative of the latter told Vostok-Media that it is actively carrying out construction work on its site to build the Selena gaming facility, the first stage of which is required to be completed by 2019.