Mordashov's company Power Machines won a claim against PetroVietnam for $500 million
The Russian company Power Machines of Alexey Mordashov, which has been under US sanctions since 2018, won a claim against the Vietnamese state corporation Vietnam Oil and Gas Group (PetroVietnam) at the Singapore International Arbitration Center (SIAC). He writes about this on Monday, February 12 RBC.
It is noted that this is the first public victory for a Russian company under sanctions in international arbitration since at least 2022, when the West imposed tough sanctions against Russia after the start of a special military operation (SVO) in Ukraine.
In 2019, the Power Machines company sued the Vietnamese state-owned company Petrovietnam demanding the return of $250 million invested in the construction of thermal power plants in the republic, but frozen due to US sanctions against the Russian company. The lawsuit came to court after representatives of Petrovietnam ignored an invitation to negotiations at the government level from the Ministry of Economic Development.
According to the publication's source, Power Machines' claim was satisfied in the amount of more than $500 million, which is the actual cost of constructing the project by the date of termination of the contract. The Vietnamese side's counterclaim for approximately $3.5 billion in damages was rejected.
A representative of Power Machines told the publication that SIAC ruled in favor of the company in November 2023. “Power Machines is satisfied with the court’s decision, however, the terms of the decision are confidential and cannot be disclosed to either party at this stage,” the company clarified.
Power Machines signed a contract for the construction of the Long Fu-1 thermal power plant in December 2014. It was assumed that the work would be completed in five years, in December 2019. The Russian company was included in the US sanctions list in January 2018. American citizens and companies are prohibited from entering into transactions with those on the list. In total, American or related companies accounted for about 30 percent of the station project.
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