The court ruled on March 18 that the Russian-owned premises of the former Soviet trade mission were to be auctioned off to pay back the country's debt to German businessman, Franz Sedelmayer. The businessman lost $2.3 million in a joint investment project with Russian authorities in the 1990s.
"Russia plans to appeal against the decision as it runs counter to the fundamental norms of international law and infringes on the country's sovereign rights," Viktor Khrekov said.
Kommersant, a leading Russian business daily, wrote Thursday that Russia's debt to Sedelmayer stood at 4.9 million euros ($7.58 million), including interest, from 1998, when a Stockholm court ruled that $2.3 million be paid to the businessman.
The Cologne court said Tuesday the Soviet trade mission could not be regarded as immune from the legal process as it was used for commercial purposes rather than state affairs.
Khrekov said the same court in Cologne ruled in May 2007 that "compulsory execution" regarding Russian property owned by a state unitary enterprise was inadmissible. Sedelmayer then appealed the ruling.
Kommersant quoted Sedelmayer as saying the Kremlin administration had no more opportunities to prevent the auctioning of its property.
The newspaper also said the Cologne court's ruling can be appealed in Germany's Supreme Court within a month.
Legal experts have said if Sedelmayer finally wins, it is likely to set a precedent for other companies seeking claims against Russia.
Swiss trading company Noga has chased Russia through the courts and repeatedly applied for the seizure of Russian property abroad since 1993 over claims that Russia owes it over $75 million from an oil barter program. In January this year a Swiss court froze Russian assets in France, including accounts held by Russia's Central and Development Bank.
