Calm Returns to Disputed Kronstedt Container Site

The Finns have not attempted to re-enter their rented site with is now under heavy guard.

The land, in the port of Kronstadt near St. Peterburg, is being leased by the Finnish company Containerships so they can expand their operations. Rosstroi has been trying to take control of the land for its own uses.

On Wednesday, Rosstroi sent bulldozers to remove a fence around the property. Containerships employees tried to prevent the vandalism by standing in front of the machines, but eventually they had to give way.

Although the demolition was illegal, Russia's militia, which was on the scene, did nothing to prevent it.

Rosstroi, which is building a protective dam across the eastern end of the Gulf of Finland, has been hampering the activities of the container terminal for more than a month. Methods have included preventing access to and from the port using trucks to block the roads.

Containerships has said that it is willing to allow Rosstroi to use the property while the construction of the road to the dam is underway, but the authority wants to take over the area completely. Containerships sees the action as an attempt by the Russians to take control of a successful business.

The incident is the first violent confrontation in the conflict between the Finnish company and Russian officials.

Container Finance has now announced that it will take Rostoi to court for illegally taking over the site and on charges of assault. The Finnish news agency reports that talks between St Petersburg city officials and Finnish company representatives will resume next Thursday.

Foreign Minister Ilkka Kanerva sharply condemned the attack, and said that Finland would do all it can to resolve the problem through diplomatic channels.

Chamber of Commerce Fears Investment Restrictions The Finnish-Russian Chamber of Commerce says a desire by the Russian government to restrict foreign ownership of businesses is behind the Kronstadt site dispute. It's Director Tarja Tiirikainen told YLE Radio News that the Russian government wanted to limit foreign ownership in some sectors to under fifty percent of a company's shares. Tiirikainen says it is essential that the Finnish government comes out with strong support for Finnish businesses and does not hid behind the EU on the issue. Foreign Minister: Russian Tactics Completely Unacceptable