The first public victory of a Russian company under sanctions before an international court was won by Power Machines of billionaire businessman Alexei Mordashov, former director of Severstal, member of the board of directors of Nord Gold NV and owner of a third of the company’s shares. TUI Group travel. The Singapore International Arbitration Center (SIAC) recognized the claim as legitimate and the company managed to win more than $500 million from the Vietnamese state corporation Vietnam Oil and Gas Group (PetroVietnam).
The first satisfied claim of a subsidiary of the Russian Federation was reported to RBC by a source close to the corporation’s business and the progress of the process, as well as an anonymous federal official. At the end of last year a positive court ruling was issued.
“The SIAC ruled in favor of Power Machines in November 2023,” said a company representative. “Power Machines is satisfied with the court’s decision, but the terms of the decision are confidential and cannot be disclosed to any party at this time.”
It is known, however, that the claim was satisfied for an amount of more than 500 million dollars, which corresponds to the real expenses of the company (unpaid invoices, cost of equipment, evaluation of the work carried out before the termination of the contract. contract, etc.).
The contract between Power Machines and Technical Services Corporation (a subsidiary of PetroVietnam), signed in 2013, was initially estimated at $1.2 billion. The corporations were supposed to jointly reconstruct the Long Phu-1 thermal power plant in Vietnam.
Power Machines was subject to sanctions in 2018, before the massive wave of sanctions in 2022-2023. In 2019, the national construction company stated that US sanctions were a force majeure preventing the implementation of the project and suspended joint activities.
The Technical Services Corporation did not recognize this decision and even tried to challenge it, including in court, demanding fines worth $3.5 billion. The payments were also to refer to actual losses suffered, but the case also included a request for compensation for “the cost of construction of the station with interest for four years”, and the arbitration court rejected this claim.
Author:
Ekaterina Alipova
Source: RB
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