Oct 30, 08:00
Sanctioned Power Machines sues Vietnam
Power Machines by Alexei Mordashov demanded from Vietnam to return the $ 250 million spent on the creation of TPPs through a court. The project was stopped due to US sanctions against the Russian company. Outside the court, it was still not possible to solve the problem
Power Machines Alexey Mordashov filed a lawsuit with the Singapore International Arbitration Center (SIAC) to recover funds invested in the construction of the Long Fu-1 Thermal Power Plant (TPP) in Vietnam, which was stopped due to US sanctions Russian company. About this RBC told two sources familiar with the fact of filing a lawsuit. A source close to Power Machines confirmed to RBC that the lawsuit was filed.
The amount of the claim, the RBC interlocutors did not disclose. According to one of them, a judicial claim against the customer for the construction of a thermal power plant – the state-owned company Petrovietnam – was sent in August 2019, after the Vietnamese side ignored the invitation of the Russian Ministry of Economic Development to negotiations at the government level. The representative of the Ministry of Economic Development declined to comment.
Petrovietnam refused to make contact with Power Machines, the head of the Russian company, Timur Lipatov, said in an interview with RBC in July. According to him, for more than a year the Vietnamese side has for some reason left the company's proposals unanswered. “We are striving to resolve the situation that arose due to unlawful American sanctions, and at any time we are ready to return to the negotiating table in order to continue cooperation or come to a peace agreement to terminate the contract and transfer to the Vietnamese side all subcontracting contracts,” a representative of Silmash told RBC "October 29, declining to comment on the lawsuit. The press service of Petrovietnam did not respond to a request from RBC.
Why Silmash complains to Vietnam in court in Singapore
Power Machines had problems with the Long Fu-1 TPP project in Vietnam after the company entered the US Treasury sanctions list in January 2018 on charges of illegal deliveries of gas turbines to Crimea. Persons on this list are prohibited from entering into transactions with American citizens and companies. Lipatov told RBC in July that the share of American and US-related suppliers in the Vietnamese project was about 30%: steam turbines with General Electrick generators, heat exchanging equipment of a Spanish company, where Americans are investors, and so on.
. (tagsToTranslate) Company (t) Vietnamese (t) Russian (t) Construction (t) American (t) Contract (t) Source (t) Vietnam (t) Arbitration (t) Refuse (t) Negotiation (t) Representative ( t) P (t) International (t) Ministry of Economic Development (t) Proposal (t) Recognized (t) Propose (t) Option (t) Government