A local radio station is in danger of losing more than a million dollars to the tax inspectorate because of license violations.
According to the tax inspectorate's claim, which will be ruled on in an arbitration court on April 23, Europa Plus St Petersburg is broadcasting illegally without a special license.
Europa Plus St Petersburg, which works on contract with Europa Plus -- one of the most popular radio stations in Russia -- could lose 5.8 billion roubles ($1.2 million) in the ruling.
But Victor Mashendzhinov, general director of Europa Plus St Petersburg, said his company never broadcasted anything and no frequencies were provided to them -- thus they are not eligible for such a license.
"There is no such radio station as Europa Plus St Petersburg," he said.
"There is Europa Plus, broadcasting from Moscow to St Petersburg as well as to 48 other cities in the CIS starting January 12, 1991."
Europa Plus St Petersburg was registered April 19, 1993.
According to Mr Mashendzhinov, his company produced radio and TV programs and sold advertising to Europa Plus to broadcast from Moscow on certain frequencies -- 72 and 68 AM and 100.5 FM -- in accordance with the companies' contract.
He said the license to broadcast on these frequencies was provided to Europa Plus by the print and mass media ministry and was later re-registered as licence #1040 in the Russian Federal TV Service.
But according to Sergei Alexeyev, head of the St Petersburg department for the State Communications Inspectorate, Europa Plus does not have the license which allows them to broadcast on the frequencies "around 70 AM" although they do have the license to broadcast on 100.5 FM.
"When they just started to broadcast, there was no need for such a licence," he said. "Later they missed the moment -- possibly forgot about it.
"Actually the local Broadcasting and TV Center is the owner of these frequencies, and they are to blame because they provided their frequencies to a station which does not have a license," said Mr Alexeyev.
The tax inspectorate refused to comment before the arbitration takes place.