Russian court releases U.S. pizza chain owner on bail - 2

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NOVOSIBIRSK, April 22 (RIA Novosti) - A southwest Siberian court released on 1 million-ruble ($30,000) bail on Wednesday the U.S. owner of the New York Pizza restaurant chain in Novosibirsk, who has been accused of tax evasion.

Eric Shogren, 43, a Minneapolis native who owns over 20 restaurants, was detained by police in Novosibirsk on Tuesday.

"The court sees no grounds for choosing custody as a punishment," Judge Yevgenya Zhigaleva said at the court session on Wednesday.

The Leninsky district court rejected a request by Novosibirsk investigators that Shogren be remanded in custody to prevent him from absconding to the United States.

The judge said Shogren's detention could "negatively affect" his company's business in Russia.

A total of 15 criminal cases have been opened against Shogren in Russia, Investigator Denis Zherdenko said. The businessman has been officially charged on six counts, and the investigation is continuing.

Investigators demand that Shogren pay 9 million rubles in back tax and 20 million rubles in compensation to debtors, including the Bank of Moscow.

The businessman has denied he is guilty saying that "he never had any intention of committing any crimes." Shogren told journalists his company had troubles amid the global economic crisis but promised to pay the debts and pledged not to quit the restaurant business in Russia.

In late 2008, bailiffs were sent to collect 52 million rubles ($1.5 million) in tax arrears and loans from Shogren. In January, a criminal case on suspicion of tax evasion was opened against him and the New York Pizza's bank accounts in Russia were frozen.

In February, more than 30 pizza chain workers demonstrated demanding that the company pay 7 million rubles ($205,000) in wage arrears.

New York Pizza opened its first restaurant in downtown Novosibirsk in 1996.